Over recent weeks, we’ve been tackling the often-neglected category of hot drinks. Working with Taylors of Harrogate and their expertise, we want to increase sales of hot drinks for independent retailers by making some simple tweaks to your fixture. In our last issue you had a sneak peek at the retailers involved with this project, so now it’s time to introduce you properly and see exactly what happened when Retail Express’ Caroline Cronin and Taylors of Harrogate’s category executive Hannah Barnes went in store.
Notay Stores (Nisa), Heckmondwike
Shop size: 1600 sq. ft.
Location: main road
“None of my customers are brand loyal when it comes to their tea and coffee needs; they usually go for whatever is on offer. That’s why I stock mostly price-marked products and bespoke ‘on request’ items. Frequency of purchase is fairly high with the majority of my customers coming in because they’ve run out or forgotten to buy their tea bags during their weekly shop. I’ve put all our hot drinks at the front of the shop to avoid shoplifters stealing the high value coffee products, so it’s a very visible category in my shop. I want to talk to Hannah about giving it a boost so that I can attract new customers with some new products, and increase volumes with my existing customers.”
“Serge’s fixture already looks very good, dedicating a lot of space to hot drinks and putting it in a good position in-store. There are some opportunities for him to introduce some missing sub-categories like herbal teas and refill coffee packs by delisting some slow sellers and decreasing facings on others. Our strategy will be to boost his profits by broadening his range and encouraging his customers to buy two things, when before they may have bought just one.”
Serge has recently started selling price marked Tetley Green tea which is going well, so Hannah questions why he hasn’t explored other herbal tea options. “There is a 60% increase in herbal tea sales YOY so it’s a huge opportunity given that Serge already has interest from his customers, as long as its the right price point for him,” explains Hannah. Twinings Peppermint and English Breakfast are added to Serge’s fixture.
Refill pack formats
Roast & ground coffee is becoming increasingly popular, with consumers looking for that premium taste with minimum fuss. “Serge offers a value brand of ground coffee that isn’t selling well for him. Consumers look for brands when they want a more luxurious product, so that’s what he needs to introduce,” Hannah comments. Taylors Rich Italian is the number one selling roast & ground coffee, so this is added to his fixture. Three variants of Kenco refill packs are also introduced, offering a lightweight and Eco-friendly option which is ideal for a top-up shopper.
- Yorkshire Gold 80s are introduced to cater for customers looking for a premium tea bag.
- Products are grouped into shopping ‘missions’ to create more opportunities for mini mid-week shops.
- Horlicks sachets replace Ovaltine tubs as they offer a more attractive price point.
In the August 27 issue of Retail Express we’ll see how Serge and Bay’s sales figures have fared following the implementation of Taylors of Harrogate’s recommended changes.