Adapting to the changing state of retail
Winner: KeyStore Express Cults
Tobacco Retailer of the Year – supported by Imperial Brands
Interview with store owner Chris Cobb
IT would be fair to say that out of every category a convenience retailer needs to get their head around in a store, tobacco is one that proves a constant challenge.
Endless screeds of legislation can make some retailers feel as though they’re playing with one hand tied behind their back and can certainly make opportunities at the gantry considerably more limited.
Therefore, it stands to reason that a retailer who knows how to drive their tobacco range effectively shows they know the category inside-out and proves tobacco can be just as lucrative as any other category in store.
Such a retailer can be found in KeyStore Express Cults, in the Aberdeen area, as store owner Chris Cobb knows exactly how to approach the section and ensure it doesn’t just go up in a puff of smoke.
Chris said: “When figuring out the approach to tobacco in store, we really need to think about who is around us.
“Because we have so much competition in the area, between the massive Tesco and Sainsbury’s stores nearby, we need to make sure we can attract customers with the right offer.
“Price, then, is something we need to look at. We sell all our products at RRP and ensure we’ve always got availability of them.
“And I think this is where independent stores can really shine. If there’s a customer looking for a certain product or a more specialised one then it’s easier to get a conversation going about products and you can look at ordering that in.
“We had a regular customer come in and, instead of asking for their usual pack of Richmond , they asked us whether or not we could stock Pall Mall Blue Super Kings.
“While we didn’t have it in stock that day, we can easily get it delivered out to us, but it means the customer gets what they’re asking us for and shows they can trust in us as an independent store.”
Taking what initially seems like a challenge and turning it into an opportunity is exactly what top tobacco retailers should be looking to do across the entire gantry and Chris demonstrated the store’s talent in doing just that to ensure no customer leaves without the assurance they will get exactly what it is they’re looking for.
As such, Scottish Grocer Awards judges saw fit to name KeyStore Express Cults as the Tobacco Retailer of the Year at the Scottish Grocer Awards 2023 ceremony.
It’s this approach to customers that continues to work with KeyStore Cults, as Chris highlighted the importance of shopper loyalty for the store.
He said: “I’ve had customers come in to talk to me about the prices in other stores, like with the nearby Sainsbury’s store.
“They talk to me about their prices and how they can be even a pound more expensive than what I offer and that makes them want to come to my store.
“As a convenience store, we have more control over the stock and a greater degree of knowledge about the products for customers to make the most of.”
Covering off factory-made cigarette options, roll-your-own tobacco as well as tobacco accessories such as filters, papers and lighters, KeyStore Cults boasts a wide range of options for its customers for the team to keep account of.
And with around 170 SKUs to stay on top of, this is no small task but it is certainly one they have made the most out of to ensure a success story for the gantry.
Chris said: “I still believe tobacco is such an important category for many consumers out there as it brings people into your store.”
Along with this, adaptability has to be taken into consideration with the tobacco trade, with constant new legislation up in the air to keep up to date with. Preparing to meet these changes head-on has to be the attitude coming from every retailer looking to boost sales from their gantry.
Chris said: “The timing of the disposable vape ban announcement has worked out quite well for us, in all honesty.
“We’ve just had a new gantry installed that has a lot more room for us to make use of so, when the ban comes in next year, we’ll be able to fill that space with other nicotine products from across the board.
“But even with a year to go until this, we’re still thinking about the changes we’ll be making over the next 12 months and how we can adapt to this.
“This has always been the case with products across tobacco as well, though. Certain brands will take off for short periods of time and then you’ll see them slow down and something else will take their place, so it’s about quickly changing to match the demand.”
Meeting this ever-changing demand is also ideal for the Cults store when it comes to its ordering system, which can see new products roll on to shelves the same day they are ordered.
“The ideal part about being where we’re located, we get stock out to us very quickly.
“Since we’re in Aberdeen, the delivery driver will come to us first and work his way back to the depot in Glasgow, so I can put in an order first thing in the morning that can be with us by five o’clock the same day.”
And it’s this advantage that wholesaler JW FIlshill gives to the KeyStore that Chris reckons can give him the edge in improving customer loyalty, something that Chris values highly across the store.
He said: “Loyalty can go both ways when it comes to shoppers and this really counts in the tobacco trade.
“At the moment, shoppers are looking for a better deal on what they can get at the gantry and that gives retailers the chance to talk to them a bit about their options.
“While shoppers will have loyalty to the brands they know and will stick to them, there’s still the chance to talk to customers and tell them about the cheaper choices you have in store.
“While it means less of an overall basket spend, it can sometimes mean the difference between whether or not you get the sale. And the customer will always remember this, too, they will come back to you because you helped them to get a better deal out of their shop.
“Ultimately, you need to think about your customers first, not about making the most profit wherever you can, and remain loyal to the customer.”
It’s clear KeyStore Express Cults will be doing everything it can to keep the customer first across the entire business going forward, with plans for a new refit, including more up-to-date refrigeration to improve the store’s sustainability goals.
Chris said: “We’ll be keeping the local service going and ensure our customers know they can trust the store for anything they are looking for, whether this be from the gantry or the newspaper round.”
