Mark McMullen

Lots of interesting content and commentary being shared following the publication this morning of Kingfisher plc Half Year Results for the six months ended 31 July 2024. Overall performance has been described by the business as 'In line with expectations', but below the surface there are some interesting facts:- - Total KF Sales £6.756m, -1.4% below last year (-2.4% like for like). - UK & Ireland -0.2%, despite the horrible garden season, so fairly resilient. - French performance and market still in a bad place -7.2% like for like decline. - Weak performance of Big Ticket - same message as Wickes last week. - Strong performance from TradePoint UK, with like for likes +7.1% and now 22% of overall B&Q Sales - 20% this time last year. - B&Q like for like Sales -1.0% and Screwfix Sales +1.2%. - Total Group e-commerce sales +8.4% driven by UK and Ireland. - E-commerce overall KF Group penetration now at 18.3%. - B&Q Marketplace now 41% of B&Q ecommerce sales in Q2. - As of 31 July, B&Q had a total of 309 stores in the UK & Ireland and Screwfix had 938. - Screwfix continues to plan for up to 40 new stores in the UK & Ireland in FY 24/25 Read more detail on Insight DIY here - https://lnkd.in/ey7NkhNQ Have fun flicking through the 47 page presentation below - you're very welcome! #results #retailnews #homeimprovement #retail #commerce

56

4 Comments

It was Christmas 2008 & I was buying one of Tesco’s largest categories, but I knew something had to change. I’d been buying for over 10 years & was now leading the Spirits category, which as well as being very big, is also one of the most seasonal in the Store.  So HUGE uplifts in the last 6 weeks of the year. We’d done it (again).  All the big plans executed, trade drivers landed, availability where it should be. But the thrill was gone.  It used to be doing the big deals that energised me, but increasingly it was now the plan, the analysis, the thinking, the strategy. The satisfaction of doing the work to properly understand: - what different consumers wanted - how the Shopper shopped - what was really driving category performance - and how it could be improved. Doing all that work and seeing it land in Store & deliver what we wanted it to do. Optima Retail wasn’t the plan at that stage – my first non-buying role was to project manage the Tesco Range Customer plan, working with Dunnhumby to improve ranging across the Store & launch Shelf Review. It was, however, the start. The moment which I can look back on which started the journey, which led to leaving Tesco 4 years later, and which ultimately is the reason I’m here doing this today, another 12 years on. Ever since I got my first lesson in category management, long before that moment in Tesco, I’ve been fascinated by how categories work.  How a good range is built, and the mistakes the bad ones make. By the levers you can pull to unlock new category growth. By the fact there are ALWAYS opportunities to improve… And by the art of taking all that data & insight & crafting it into simple, but compelling stories that inspire. So that’s what we now do. For me taking the best bits of Buying – which honestly at the time was probably less than a quarter of my week.  And now doing it full time, all week, all year.  Running a small business is not easy.   There’s been a lot of ups and downs. But ultimately the challenge isn’t you vs the market, its you vs you. There’s always a way through, always a solution. And when you are doing something you love, and you’re all in, I guess it just makes you push that little bit harder until you find it. #categorymanagement #Entrepreneurship #CareerJourney Tesco HQ Photo : Gordon Joly via Wikimedia Commons

61

14 Comments

What happened in retail this week? 👇 - Asda pushed its debt burdens into the next decade after refinancing more than £3.2bn of debt. - Lidl GB announced £500m investment in the British pork industry as part of its commitment to sourcing from British producers. - Morrisons completed the £2.5bn MFG petrol forecourts sale. - Sainsbury's underlying pre-tax profits for the financial year were up 1.6% to £701m ahead of company expectations and grocery sales soared 9.4% over the period. - Aldi UK revealed that between 8am-9am and 7pm-10pm are the quietest times for customers to pick up their shopping ahead of the bank holiday. - Pets at Home opened two more stores on London high streets as it branches out from its typical retail park sites. - Co-op furthered its 100% free-range offer by introducing a white egg range to 2,400 stores. - Aldi UK launched a nationwide initiative to pinpoint prime locations for new store openings and has asked Brits to identify which areas across the UK need a new Aldi store, with suggestions to be submitted by 31 May. - Farmfoods is targetting 20-30 new stores as annual turnover passes £1bn. — — — — — — — I post the biggest stories from the UK’s biggest retailers each week. Connect with me to never miss a weekly update. #Retail #News #May 

47

What a week... Our largest-ever retail order is packed and ready to go out to Boots UK - almost DOUBLE the size of our second-biggest order for retail. Our original 3 x SKUs and an additional 4 x SKUs, launching next month in over 160 new Boots locations. Well over 100,000 units packed and palleted ready for collection. A huge achievement as we expand further across our category in Boots due to significant uplifts in sales. Retail is fast becoming a key area of focus for us and there is no better time to stock the world's best zero-sugar, natural vitamin and electrolyte hydration sachets! A huge well done to the ViDrate team for the rapid turnaround (on top of a record order for Amazon and a huge increase in online orders). Myself and the ViDrate team are also super excited to reveal a huge announcement with Boots in 2-3 weeks time - stay tuned! Just in time to finish the preparation for a flavour launch in approx 2 hours! #retail #growth #boots #expansion #entrepreneur

166

45 Comments

NEED YOUR HELP PLS…We’re having an internally debate about Xmas adverts!!! 🎄🎅🏻 What is the best Xmas advert of ALL time EVER! Pls comment below 😉 #xmas #advert #advertisment #tv #christmas

3

2 Comments

Tesco Aiming For Extra £1bn In Sales From Premium Range The CEO of Tesco has revealed that the retailer is targeting an extra £1bn in sales for its Finest own-label range to meet growing demand for premium food & drink and challenge the likes of Waitrose and M&S. Finest currently has annual sales of £2bn. Speaking to the Financial Times, Ken Murphy said: “We haven’t yet set our stall out to say ‘what would it take to get to £3bn’, but we’re very conscious it is playing an increasingly important role.” He added: “We genuinely believe . . . that our intrinsic [food] qualities are every bit as good as anything you would get at Sainsbury’s and increasingly out of Waitrose … M&S, we probably still have a bit of work to do.” The report notes that in the face of higher living costs, shoppers are shunning restaurants and becoming more adventurous with their cooking at home. Data from Kantar shows that spending on premium own-label lines in the leading UK supermarkets rose 12% in the year to 9 June even as inflation eased. The figure was also nearly double the 6.9% growth in all brands owned by the grocers, including their budget ranges. The FT highlighted that Tesco’s Finest products account for only over 3% of the group’s £61.4bn sales, although this is equivalent to about a quarter of Waitrose’s total sales and M&S’s food sales, respectively. However, it has taken Tesco about a decade to reach the £2bn level from £1.4bn in sales in 2013. Murphy did not reveal whether there was a target date set for getting sales to £3bn, but Clive Black, a retail analyst at Shore Capital, told the FT that it would not be earlier than “the medium and long term before that number is reached” given that the industry’s annual growth is relatively modest. NamNews Implications: * ‘Shoppers are shunning restaurants and becoming more adventurous with their cooking at home…’ * …heightening consumer awareness of the difference made by quality ingredients… * …and the home-cost of ingredients vs the price paid in hospitality. * All potential threats to ‘eating out’ long term. * Apart from increased savviness re branded equivalents in store. One to watch… #OwnLabel #Hospitality

18

1 Comment

"You may fuel your car once a week, but you fuel your body three times a day." In this short video the one and only Frank Gleeson sums up how convenience and foodservice is merging and the key building blocks for success, giving the consumer what they want, in different day parts, on different meal occasions. ✅ It all starts with a great customer offer - what do they want to buy at different times of the day? ✅ Operational efficiency - can you keep your shelves stocked, can you do a really good job on the standards of operation? ✅ Third thing, most importantly, is it financially profitable for the retailer? As we search the globe for "The Best Foodvenience Store in the World" together with Invenco by GVR, we see well trained teams, highly engaged management in a completely dynamic industry. Supported by our sponsors The Moseley Group and, newly announced, The Coca-Cola Company we are going to seek out and showcase the very best in our industry worldwide and move the dial for what is clearly an on-going transformation. Let the competition begin! #foodservice #bestfoodveniencestore🌎 Elaine P. Kanak Alan English Ganesh Kalpundi Harry Milloff Oliver Delaney Global Convenience Store Focus Insight Research More details to enter: https://lnkd.in/eZYSBY6b

168

5 Comments

Simple. Clear. (almost) predictable. This is typical Tesco; highlighting their low prices and true value. Stark comparison to what we see elsewhere in other retailers, struggling for sales so just pushing more and more messages out there...... Super clear for customers. They are in no doubt as they enters the store; what is being conveyed to them. #retail #value #tesco

183

18 Comments

Meet our Senior Commercial Controller Julian Smith in the latest issue of Cash and Carry Management! In the spotlight Julian shares his interests, achievements and how he got into the industry. Read the article below.

21

Morrisons Snaps Up 38 C-Stores In The Channel Islands Morrisons has expanded its convenience estate with the acquisition of 38 stores in the Channel Islands from SandpiperCI. All of the stores are currently supplied by Morrisons and 19 already operate under its Daily fascia. The transaction includes six fuel forecourts. The stores are located on the islands of Jersey, Guernsey and Alderney, generating sales of £124.5m over the last year. Morrisons has had a relationship with SandpiperCI since 2018, when the two companies signed a long-term franchise and wholesale supply agreement. Under the terms of the transaction, around 520 SandpiperCI store and operations staff will transfer to Morrisons. The business will be managed by Joseph Sutton, Morrisons Convenience, Online and Wholesale Director and his team, which includes Miles Foster, the Convenience Operations Director. “We have had a solid and successful supply and franchise partnership with SandpiperCI and we have a strong relationship with the business. I look forward to welcoming 520 more colleagues into the Morrisons family, together with 38 popular and well-located convenience stores,” said Rami Baitiéh, Chief Executive of Morrisons. “Our convenience business is now well set and growing rapidly. The addition of a further 38 stores will bring us another opportunity for growth and a strong position in the important Channel Islands’ convenience market.” Morrisons now has around 1,600 convenience stores, of which 600 are operated under franchise agreements. NamNews Implications: * Morrisons should benefit from six years close relationship with the 38 stores… * ..besides giving more intimate coverage of the Channel Islands convenience sector. * Also, despite debt issues… * …a strong ‘business as usual’ signal to rivals. #Morrisons #ChannelIslandsRetail

10

Why did England fail to win the Euros and what can we learn from this?   We all have our own strengths and weaknesses. Focusing on your strengths and improving your weaknesses is the only way grow to the next level.   From a football perspective, I think Gareth Southgate and his overly cautious approach and more defensive style of play, was what limited England to being runners up twice.   To win a tournament, especially a final, you have to dominate your opposition and impose your style of play on them. With only 34% possession it was hard for England to get a foothold in the game, and they were reliant on just “nicking it” in the final minutes of the game, which was the negative way they had played throughout the whole tournament. It felt like the Managers’ weakness of being cautious, reflected in the way England played.   Being seen in the public domain, has always been my own fear and weakness. It might be hard to believe, but I am actually a very introverted and private person! To the point, where a couple of years ago, I even had to be convinced by colleagues to put my profile photo on Linkedin, never mind posting on here!   However, I knew I had to get away from this self-imposed limitation and accept that if Baked Earth is to become a household name, which has always been my aspiration, then I have to take centre stage and be more public. The next stage in the journey is for me to post a recorded video of me talking, which actually terrifies me! Yes, talking on camera is actually one of my major phobias!   In life, business and football, we have to confront our fears. Overcome our weaknesses. Take on our inner demons.   Or else, live with the regret, of what could have been.   The choice is yours. And yours alone.

13

1 Comment

3 weeks in with Good & Proper Tea | B Corp™, here are my initial observations of what it's like to join a challenger brand: ▶ The pace is electric and the energy is infectious, but it means that the learning curve is far steeper and much quicker 🚀 ▶ You are so much more invested in the business you join, I am finding that I care so much more ❤️ ▶ You feel every high and every low more keenly because of that investment 🎢 ▶ Accountability is a blessing and a curse, you get to make decisions at pace but you are on the hook to find solutions and a way forward 🎯 ▶ I'm so much more impatient, there is opportunity at every turn, but you can't get after them all at the same time 😅 ▶ The breadth of what you're across is so much more varied and you have to be comfortable rolling your sleeves up and getting stuck in 💪 ▶ Having safeguards in place to find balance and manage mental health become even more important because it's a lot harder to switch off 🤯 ▶ I have an even deeper respect for all you founders out there, especially Emilie Holmes, what it takes to get a business off the ground and to start scaling is nothing short of heroic 👊 3 weeks in and I wouldn't change it for the world!

176

14 Comments

Refinancing Pushes Asda’s Debt Into The Next Decade Asda has refinanced its multi-billion-pound debt pile as its owners seek to put the supermarket’s finances on a firmer footing amid work to win back shoppers after a period of weak performance. The refinancing, which was completed yesterday, included the biggest Sterling high-yield bond this year and the second-largest sterling bond in the European leveraged finance market – only behind Asda’s original £2.25bn Sterling bond tranche in 2021. The retailer noted that the refinancing had pushed out the majority of its maturities into the next decade, although at higher interest rates compared to when it was acquired by the Issa brothers and TDR Capital. Asda credited “strong investor demand” in helping it raise £1.75bn of senior secured notes and upsize by more than £200m on a £900m Equivalent EUR Term Loan B (TLB), bringing the final size to £1.1bn. The maturities of the new senior secured notes and TLB are 2030 and 2031, respectively. As part of the £3.2bn refinancing, Asda used £300m of balance sheet cash to reduce gross debt. Asda also extended the maturity of its revolving credit facility (RCF) from August 2025 to October 2028 and was able to upsize the facility from £667m to £748m in connection with the wider refinancing. The move comes days after credit agency Moody’s upgraded the supermarket’s corporate rating from B2 to B1, noting its “solid” financial performance last year, particularly the reduction in leverage and growth in underlying free cashflow. Asda’s annual 2023 results show its adjusted EBITDA after rent rose 24% to £1.08bn, with like-for-like sales increasing 5.4%. However, market analysts have raised concerns about Asda’s weakening sales performance this year and the impact of debt interest payments on its finances. Kantar last month: Asda continue struggle vs main rivals, mkt share down from 14.0% to 13.4% after 0.4% sales fall in 12 weeks to 14 April. Commenting on the refinancing, Asda’s Chief Financial Officer, Michael Gleeson said: “We saw strong demand from investors after taking a thoughtful and prudent approach to refinancing our near-term debt well ahead of maturities – to further strengthen our balance sheet. “The refinancing also reflects the wider strength of Asda as a diversified retail group with a strong grocery business at its core supported by a fantastic non-food offering in George and following recent investments, a major presence in the high-growth convenience and foodservice markets.” NamNews Implications: * Suppliers will no doubt reflect their Risk profiles in adjusting their Asda trade strategies… * i.e. depending upon whether a supplier regards itself as Risk Seeking, Risk Neutral or Risk Avoiding… * …so they will adjust their investment in Asda up or down… * …and not all suppliers will be the same. * So anticipate some changes in relative share of Asda business by supplier over the years ahead. #Risk #Exposure

11

1 Comment

Are your food costs going up? Want to start saving money? Now is the time to consider alternative suppliers for the new academic year. We can offer a free, no obligation, benchmark, interested? Email me for more details - [email protected] #bursar #independentschoolnews #schoolbusinessleader

7

We are committed to doing the right thing for our communities, our people and our environment. As part of our People, Pubs & Planet strategy, we have set out three key pledges: ✔ Net zero carbon for direct emissions by 2023 ✔ Net zero for Scope 3 emissions no later than 2040 ✔ Zero waste to landfill by 2025 We have been supported in our efforts to source sustainable energy for our pubs and brewery by True - Powered by Open Energy Market, and were delighted to team up with them on this case study outlining our work together. 👉 Read more about our People, Pubs and Planet strategy here: https://lnkd.in/d3zKsKye 🌍 🍻 #kentbusiness #sustainability #beer #brewing #pubs #esg

69

2 Comments

There are any number of reasons for failed purchase intentions: - Shopper's expectations of the c-store's range is not accurate (although shoppers tend to visit the c-store 2-3 times a week and very few shoppers are 'first timers'). - Ranges aren't reflecting shoppers' current needs (are some ranges still skewed by retailer purchasing habits during covid? Are category re-sets required? Price a barrier?) - SKU counts too big (The ACS Local Shop Report 2024 shows the average c-store sells well over 4,000 skus, in a store which is typically 1,000 sq feet). - Signage - Product placement - Availability - 'Gave up looking' We don't need to be critical of the situation - let's get excited by the unfulfilled opportunity....identify what's happening....and why....and change things around. Come join TWC Group on this exciting journey in 2025.

9

4 Comments

📈 New Insights: Scotland Outperforming in Wholesale Channels Exclusive data from TWC and HDI, commissioned by the Scottish Wholesale Association, reveal that Scotland is outperforming England and Wales across key wholesale channels, especially in convenience retail and foodservice. Thank you to Hospitality Data Insights (HDI) and TWC Group for sharing these valuable insights to SWA members at the webinar on Tuesday. Key takeaways: 🔹 Scottish wholesalers lead in value growth within the convenience sector, boasting the largest regional share of sales in GB. 🔹 Strong growth across seven out of 10 retail categories, particularly in impulse buys. 🔹 Hospitality sales grew by 2.1% year-on-year, with pubs and bars leading the charge. Despite economic pressures, the Scottish wholesale sector remains resilient and optimistic about future growth opportunities.

25