Data reveals high street experienced poor summer sales

Two retail organisations have revealed a less than positive picture on the high street this summer.

The British Retail Consortium (BRC) has highlighted that on a total basis, sales increased by just 0.3 per cent in July, against an increase of 1.6 per cent in July 2018. This is the lowest figure recorded for the month of July since the BRC’s records began in 1995 and comes after the worst June on records. This is above the three-month average of -1.3 per cent but below the 12-month average of 0.5 per cent and is the lowest 12-month average on records.

The BRC also revealed that over the three months to July, food sales decreased one per cent on a like-for-like basis and 0.3 per cent on a total basis. This is below the 12-month total average growth of 1.8 per cent and the lowest three-month average since December 2014, excluding Easter distortions.

Helen Dickinson OBE, Chief Executive at the BRC, commented: “While retailers will welcome the return to growth, it has nonetheless been a punishing few months for the industry. The combination of slow real wage growth and Brexit uncertainty has left consumer spending languishing, with the 12-month average total sales falling to a new low of just 0.5 per cent. Whereas last year’s glorious sunshine and World Cup Finals led to strong consumer demand over the summer, this year has been weak in comparison, with both June and July showing the lowest sales on record for their respective months.

“The challenging retail environment is taking its toll on many high street brands, who must contend with rising import costs, a multitude of public policy costs, and ever higher business rates. A coherent strategy for retail is needed. The Government should freeze future business rates rises and fix the appeals system before embarking on a wholesale reform of this broken tax system.”

Paul Martin, UK Head of Retail at KPMG, added: “While any growth is welcome after two months of decline, it’s clear that most players need more than sunshine to get back on their feet. With consumer confidence holding up in the face of prolonged Brexit uncertainly, shoppers are notably disengaged overall. The pressure continues to build between online and physical offerings, costs continues to rise, and the demands of consumers continue to grow. The key question is, who can handle the heat?”

In separate research, the British Independent Retailers Association (Bira) has revealed a disappointing quarter, with an average fall in sales of 2.94 per cent compared to the same three months in 2018. Scotland saw the sharpest fall in the UK compared to April, May and June in 2018, while East Anglia was the only region reporting that sales had increased marginally, by an average of 1.32 per cent.

Andrew Goodacre, CEO of Bira, commented: “These results reflect the testing times independent retail is facing. However, independent business owners are nothing if not resilient and they will continue to fight and develop to save themselves. One of the greatest things about being independent is that they can be nimble and change quickly to adapt to changing trends, unlike the bigger retailers. This gives independent retailers an edge and we are seeing lots of our members diversifying to allow them to offer products and services that shoppers need to come to the high street for and can’t just buy online.”

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Organic September has begun, and there has never been a better time for such an important campaign.

Supermarket cafes accused of being irresponsible in children’s food offering

The Soil Association has revealed a new league table ranking children’s food at 28 popular chains, with some accused of offering irresponsible menus.

The Out to Lunch league table, compiled by the Soil Association with a team of secret diner children and parents, has persuaded 13 chains to commit to serving two portions of veg with every child’s meal within the next 12 months.

JD Wetherspoon topped the league table, followed by Ikea and Harvester, with organic and sustainable ingredients and lots of veg on the menu. Children’s meals in the highest scoring chains were on average £1 cheaper than meals in the lowest scoring chains, showing that price isn’t a barrier to good food.

But even with an increase in fresh vegetables and organic food across the high street, many chains are serving children unhealthy and unsustainable meals – despite 88 per cent of parents saying that children’s food in high street chains isn’t good enough, and 70 per cent saying environmental sustainability is important to them.

One such offender was Marks & Spencer Café, which serves no veg on the children’s menu, and several chains are offering excessively sugary puddings. Hungry Horse’s Mini-Mania Sundae was found to contain 56.2g of sugar and 495kcal, more than double a child’s daily sugar allowance. Several chains, including Bella Italia and Giraffe, were found to be serving children single-use plastics, such as cups and straws and others, such as Las Iguanas and Café Rouge, are “dishing up deforestation” by serving meat fed with uncertified animal feed.

Supermarket cafes, which serve millions of meals each year, were included in the league table for the first time alongside high street chains. They generally scored near the bottom of the table, with no British meat served at Tesco Café, mouldy fruit at Morrisons Café, and ASDA Café declining to say whether they use free range eggs.

Hattie Shepherd, Soil Association Policy Officer, commented: “Out to Lunch has kickstarted a veg revolution on the high street, with more than a dozen chains committing to serving two portions of veg with every child’s meal. But many chains are being irresponsible and failing to offer children the food they deserve. Parents would be shocked if they knew popular chains were dishing up deforestation to their children – especially when it’s clear from top performing chains like Wetherspoon and Ikea that cost isn’t a barrier to healthy and sustainable food. And why are British chains and supermarkets sourcing meat from Thailand and China over British farmers? Our children deserve better.”

In response to the campaign, 13 chains have committed to serving two portions of veg with every child’s meal within the next 12 months – Harvester, Ikea, ASK Italian, Zizzi, Giraffe, Hungry Horse, Wetherspoon, Prezzo, Leon, Wahaca, Wagamama, Sainsbury’s café and Brewers Fayre.

An M&S spokesperson told Organic & Natural Business: “Our apple slices pot, as well as loose apples, satsumas and bananas, are all offered as part of our M&S café kids meal deal. Prior to this survey, we’ve already begun looking at extending our kids menu to offer more great quality, fresh food choices for families visiting our cafes.”

Have you booked your place?

With the 2019 Natural Health Trade Summit drawing closer, be sure not to miss out on the independent retail event of the year.

Registration is now open and filling up for the fifth NHT Summit.

The 2019 offering is shaping up to be the most buoyant yet, with a bigger range of exhibitors than ever, and a higher than expected number of retailers set to attend.

The event is held in association with the National Association of Health Stores (NAHS), and is designed for independent health food retailers only, who are invited to come together for a day of business, networking and learning.
Taking part at The Principal Hotel, in Manchester, on October 13, this year, we also benefit from the sponsorship of Bee Health, Tree of Life, CSY, and Optima, while The Health Store is sponsoring our welcome drinks event the night before the show.

So, what can be expected from this year’s event?

We’re excited to be presenting a diverse mix of exhibitors, which will be in excess of 100, from well-known brands in the market, including A.Vogel, Viridian, Pravera, ADM Protexin, Natures Aid, Pharma Nord, Terranova, BetterYou and Absolute Aromas, to newer brands to exhibit, such as Cannakinetic, Celtic Wind Crops, Elenzia and Neubria.
In addition to the exhibition, the event will also host a series of informative roundtable sessions, all designed to help you as independent retailers learn and network in an informal environment to discuss ideas and initiatives that can help to grow your sales.

The themes for the roundtables are currently in the process of being confirmed and are due to be announced in the next few weeks. Keep an eye out at www.nhtsummit.co.uk for full details and timing.

Networking is the word

We know how important it is for you as retailers to network with both fellow health food store owners and also your suppliers, and this informal event is the perfect vehicle for that.

As already mentioned, there is a free welcome drinks reception, being held at The Principal Hotel, on October 12 and all are welcome.

In addition, a free three course buffet lunch will also be laid on during the day, giving retailers plenty of time to catch up over some healthy food. Refreshments are also served, free of charge, through the course of the day.

Keep an eye out for our September issue of Health Food Business, in which we will be revealing more details about the event, and specific themes for the round table sessions.

Pre-registration for the event is essential and cannot be done on the day. Registration is free and can be completed by visiting www.nhtsummit.co.uk. 

Tea brand forms new partnership

It has been announced that the global rights to the UK-based yerba mate brand, Yuyo Drink, have been acquired by a German company.

Meta Mate has joined forces with Yuyo, which will see operations for both companies consolidated in Berlin. With the new partnership, together the two brands are pitching themselves as a European mate powerhouse, the go-to source for consumers looking for the whole range of mate products, from drinking cups and loose mate through to teabags and energy drinks.

Meta Mate founder, Fabricio do Canto, explained: ” We first met the Yuyo co-founders when they stopped by our shop in Prenzlauer Berg to share a mate back in 2016. From the very beginning we felt we really identified with one another and knew there was a synergy there. We have been collaborating ever since and this is the natural next step in our union.”