Fascia & Franchise: Which is the right one for you?

 

Dee Sedani, owner of two Londis stores and a One Stop, Derbyshire

Speaking with experienced retailer Dee Sedani about his experiences with symbol group, you get the feeling he is happy where he is, but always alert to what his business could be doing better – and ultimately a realist.

“I have a One Stop and two Londis stores, and it’s been about ten years now that I’ve been with Londis and One Stop,” he explains. “It’s a quiet time at the moment, but it’s going well. I’ve always been with these two as it’s just easier for me to manage businesses instead of me having to run around, it all comes to the teams there really. That’s the idea. They’re very supportive.”

Despite the ease with which Dee says he interacts with his two symbol groups, he confesses that he believes many services offered are the same form group to group. “It’s really just like buying a chocolate bar. You buy it off them and then it’s your problem - that’s the reality of it.”

Dee adds that the service a retailer will get from a symbol group is only as good as the effort that retailer is prepared ot put into the relationship. “They can’t manage a whole category for you. It’s for you to manage. You know they can’t manage your store. It’s your job to do that. They can’t ever tell you what to sell, or what not to.”

He also admits that he is often asked about symbol groups and for advice about which one is best. His response is pragmatic. “I get asked if I would recommend my symbol groups to others about 300 times a week! The simple answer is there isn’t a right or wrong here - they’re all the same. Yes, they’ve all got issues. They’ve all got things that need fixing, you know, so there’s no right or wrong here at all for any of them. It depends on your geographic area.”

And would there be anything Dee would like to see either Londis or One Stop change? “In terms of how they could improve, there’s just loads of small things - but they’re all small in the grand scheme of things. I could sit here for three days and tell you it all. Remember, you’re not going to get perfection out there, whether it’s Asda, Sainsbury’s, Tesco’s or whoever. We’re human. We’re going to make mistakes.”

Susan Connolly, Connolly Spar, Wiltshire

Susan Connolly has been with Spar for – she roughly estimates – thirteen years, across all three of her stores in Wiltshire. Prior to this she was with Londis, but was tempted by the offering Spar had at the time and made the change.

“We chose Spar because, at that time, I think they were just the most relevant to us. Also, they had a really good chilled range. They met our values and we just thought it was time for change, and that was when Spar came knocking. It was just the right time to change,” she recalls.

Today, Susan says the match is still a good pairing. “It’s still going well. The Spar fresh offering’s really, really good, which is vitally important in today’s market. “When you’ve got the chilled offering right, it increases your grocery and your fruit and veg and increases that basket spend. Spar’s got a really, really strong brand at the moment. There are lots of products in every category and customers are looking for that offer.

“They have the cheaper alternatives too sometimes and the team there are really supportive. I’ve got a BDM, they do all the promotions for me, it’s just easy. It’s just really easy.”

One thing Susan says that Spar do well to aid this simplicity is clear communication. ““They use info from the Association of Convenience Stores, and they send us emails. This week we’ve had one about vape recycling bins - they’re really good at supporting legal issues and any legislation that’s changing and they put it in a magazine with any updates in there as well, plus we get daily updates via email. It could be if a product’s recalled anything or new products.

“Their communication is great, they do it on every level to hit everybody so we get emails and we’ve got a WhatsApp chat. Plus they’re just easy to ring. We can ring anybody there and they’ll answer the phone.”

Perhaps unsurprisingly, Susan says there’s very little Spar can do to improve, even in these testing times. “There isn’t much they could improve at the moment, they’re really good. They’re trying to be relevant - they’ve just started telesales. They obviously offer us great deals for our customers. They’re still forward-thinking and try to help us as retailers. It’s not just about pushing their products as a wholesaler. They look at the whole package.”

That 360-degree approach is also something Susan says anyone looking for a symbol group should consider before taking the plunge and choosing one. “I’d advise anyone looking for a symbol group to consider the whole package and what’s included. Spar have done all sorts of things. So just look at the whole package.

“Don’t concentrate on margin and what you get back, it’s about the whole package - the support network behind you, the promotional activity. Spar do in-stores and send in merchandisers. So just look at the whole package, don’t be driven by price because price isn’t everything.”

Susan concludes by explaining that for her stores, the challenges moving forward largely come down to staying relevant to customers. “It’s just about making sure we stay relevant, staying within the community, making sure we’ve got relevant offers in store, making it a great place to shop and increasing the shopping experience,” she admits.

“There’s always a challenge with retail, but it’s just your outlook and actually being ready for it. For example, the wage increases have just hit a lot of people, but we’ve known about that for a long time. So we pre-empted it and we’ve been working hard in the background.”

Jey Sivapalan, Go Local Extra, Derby

Promotions, delivery and support are the key reasons Jey Sivapalan has stayed with Go Local for a lengthy 13 year stint.

All those years ago, the Derby-based Go Local Extra retailer chose the group over others because “three weekly promotions and two weekly deliveries” sealed the deal. The timely offers and reliable restocks made Go Local the clear winner in his eyes.

Beyond that, fortnightly BDM visits and “phenomenal support” have shaped Jey’s experience with the group - meaning he has never been tempted to change.

“They support us through everything, from a refit we underwent three years ago to recent leaflets featuring scan to win customer competitions and beaming with promotions, the group’s support is brilliant,” says Jey.

He cited the cost-of-living crisis as one of the major factors impacting his store. To address the challenge, he values Go Local’s “adaptability” and “innovation” in expanding its own-label range to support shoppers in finding affordable alternatives.

“Our Heinz beans sit right next to the Go Local beans, this helps customers buy the product they can afford. Our symbol group is adapting to the cost-of-living crisis and bringing out more own label products. They’ve even bought out their own beer which has really helped us drive sales.

“They also help us out with digital marketing. We are currently working with them to install a media screen in-store. The innovative ideas they suggest really help us out,” says Jey.

Jey advises anyone considering joining a symbol group to first determine how many promotions the group runs each week or year. Next, check if your store is large enough to accommodate running these promotions, he says.

“In some stores you need a minimum of 1,500 square feet to run the promotions. Find out what promotions would fit your store and if your store is big enough to run them,” explains Jey.

Moreover, he adds: “It is vital to find out what kind of support the group would provide and how often. Moreover, check how many weekly deliveries you can get from them, as this was a key driver for me.”

Thievanayagam Sivarajah, Nisa, Peterborough

With eight Nisa stores under his belt, Thievanayagam Sivarajah, director of TYS Retail, credits the strong personal and professional relationships with the Nisa team as the foundation of his loyalty and growth.

Behind the 15-year partnership, Thievanayagam - whose stores are located in Peterborough, Cambridge and Stamford - says he has good connections with everyone in the business.

“This is the way I grow. I listen to them, they listen to me. We work together very well and they are very easy to get on with. I called the director, Katie, who joined Nisa not that long ago, and she visited me and secured a new deal for me.

“I have a brilliant retail development manager. He comes and visits every Friday with my area manager. He goes through everything and asks if I need help with anything. He will go back to the head office, talk to them and come back with the right solution,” says Thievanayagam.

Previously, he traded with Londis for seven years. Before the change to Nisa, he had ambitions to expand his estate with larger stores that offered more variety.

“When I was looking to change symbols, I visited a Nisa store in Ireland. They are massive stores, 30,000 square feet, and in the UK they also have lots of stores with amazing retailers, which I learned a lot from. So, I thought, I’m doing something wrong here, maybe I should just join Nisa. 

”They were also owned by members and had better prices and better promotions,” he explains.

With over 100 staff in his business, Thievanayagam attributed his turnover issues to the increased minimum wage, rising business rates and higher National Insurance contributions. He thanked Nisa’s flexibility in allowing retailers to choose their margins, helping to ease rising costs.

TYS Retail is regularly championed through trade press for its commitment to supporting local charities and causes. From funding a local free festival to an annual charity event for mental health, the business has donated almost £80,000 through Nisa’s Making a Difference Locally charity.

“The best thing about Nisa is its Making a Difference Locally charity. All the money that comes in from the charity we donate to local causes and charities. People recognise what we do,” smiles Thievanayagam.