Change4Life Convenience Stores

TAKING CURRENT SUCCESS TO A NATIONAL STAGE

Introduction

BACKGROUND TO PROJECT

The Problem

Many low-income areas suffer from a lack of availability of fresh fruit and vegetables that leads to a poor diet and widens health inequalities. The convenience sector is an important route to market for low income customers who shop more often at their local convenience store, and for other consumers who are increasingly using the convenience sector for top-up shopping.

Convenience stores are located at the heart of these communities, many of these family owned businesses having been established over many years, whose sales comprise the traditional categories of confectionary, news and tobacco with limited sales of fresh foods.

Retailers who do attempt to stock fresh fruit and vegetables often experience poor sales and high wastage owing to a lack of understanding on how the category needs to be managed. The fact remains that fruit and vegetables is a highly profitable category.

The Successful Scottish HealthyLiving Example

In 2004, a small group of suppliers and retailers established a pilot project called Healthy Living Neighbourhood Shops to increase the availability of fresh fruit and vegetables throughout Scotland, in both deprived and affluent areas where little or no option existed to buy.

The programme received funding from the Scottish Executive and worked closely with the Scottish Grocers’ Federation which represents convenience stores for Scotland. Through a number of different trials the programme established a clear criteria for increasing sales and also developed bespoke equipment/POS which were given to participating retailers free of charge.

This combination of education and materials resulted in an average sales uplift of 30%. The Scottish Executive’s Report Healthyliving Neighbourhood Shops Project (2007) sets out this project in more detail and is available at This has led to 600 convenience stores across Scotland improving their range, quality and stock of fresh fruit and vegetables.

Development of English Department of Health’s project

Following the success of the Scottish pilots, the English Department of Health began to develop their own version of the project. Discussions began with an initial seminar in September 2006, where a range of stakeholders broadly supported the idea of a partnership project.

In May 2007, the then Public Health Minister Caroline Flint asked the Association of Convenience Stores who represent over 33,000 local shops, to convene a meeting of key decision makers from all the leading Symbol Groups who represent 35% of total convenience store sales and over 50% of all stores.

The idea was well received and led to a series of meetings between Symbol Groups and DH officials.

This project goes to the heart of the recent Cross-Government strategy for England, Healthy Weight, Healthy Lives. Under this strategy, the Government has set itself a new ambition; by 2020 to reduce the proportion of overweight and obese children to 2000 levels. One of the strategy’s five key themes is “Promoting Healthy Food Choices”, and the project is part of this work-stream.

Governance and co-ordination

One of the success measures of the Scottish Executive’s initiative was to employ a project co-ordinator with a proven history in the retail industry. Building on this success, the Department appointed Stephanie Rice, previously Marketing Director of Musgrave-Budgens-Londis (now Musgrave Retail Partners GB) to fill this role for the project in England.

The Department set up a two tier governance process that had partnership as a criteria for success. A Project Team consisting of Regional Sales Managers (RSMs) in the North East of England provided on the ground support. A higher level Steering Group, largely consisting of Board Members from the Symbol Groups, provided oversight and support at a more senior level.

The Department decided to pilot this project in North East of England, as it contains many areas of high deprivation, has high use of convenience stores, and contains a broad mix of ‘symbol groups’. This allowed us to examine whether retail groups were able to successfully implement the changes we were piloting.

Following the employment of a project co-ordinator, the creation of a governance structure, and identification of the region for the pilot project, the first Steering Group meeting was held on the 1st July 2008.

The use of Change4Life materials

Whilst the decision was being made to go ahead with the convenience store project, work was progressing in parallel to develop the Government’s social marketing campaign, ‘Change4Life’. The decision was made that the convenience store project would use Change4Life branding, whilst being distinct from it. The project became called the Change4Life Convenience Store Project, but operates in different ways to other Change4Life brands:

  • Some convenience stores received direct funding from the Department for Health. No Change4Life funding is available for partners.
  • The Department took a greater interest in the success of Change4Life Convenience stores, assisting them rather than just ‘patrolling’ them. The Department provided additional support in the form of POS/equipment and the project co-ordinator’s expertise of the sector

The Convenience Store sector is benefitting from targeted Department of Health, support to the their sector in return for an increase in fruit and vegetable sales, with a focussed effort on improving the quality, availability and impact in store.

Creating evaluation mechanisms

The Department also decided that in order to ensure that we could learn from Phase 1, there should be a wide range of evaluation to support the project. This would also help ensure that retailers could learn from the project as well.

The evaluation work consisted of:

  • Sales data for the stores. It was agreed that stores that took part in Phase 1 would collect data to allow for evaluation of success of the project. In practice, this has been very difficult and will continue to be a source of frustration.
  • An evaluation by Synovate, and evaluation by Jigsaw that focused on consumer views of the stores, the Change4Life programme, and healthy eating in general.

HOW THE PROJECT DEVELOPED

Engagement with Symbol Groups

Prospective partners joined up by signing the Change4Life Terms of Engagement that allowed them to use the Change4life branding. Initially, six major Symbol Groups signed the Change4Life Terms of Engagement in Phase 1. These were later joined by Landmark wholesale, making a total of 7 Symbol Groups. These symbol groups worked in partnership as a sector with the Department, supported by the Association for Convenience Stores (ACS). This allows easier communication between the Department and the symbol groups and for sharing of ‘best practice’ and information between symbol groups.

Criteria for choosing stores in Phase 1

Once the major symbol groups were involved, then the Department had to engage individual retailers who would receive funding for making the largest changes (a chiller at the front of their cabinet). The criteria for engaging retailers were:

1. They were located in a low-income area.

2. There was limited or no access to fruit and vegetables for customers in the surrounding area.

The Department of Health’s project co-ordinator, Stephanie Rice, checked these variables by visiting the stores individually and meeting each retailer. She then approved them to receive financial contribution.

Engagement with stores

The 12 development stores were launched in November 2008. The roll out stores launched later, with the majority joining between April and June 2009. In total, 100 stores took part in Phase 1. Their affiliation was as follows:

Costcutter / 13
Londis / 19
Mills / 11
Spar / 12
Nisa / 17
Landmark / 20
Booker / 7
Non affiliated / 1

Types of store changes in:

Development stores (initially 12, later 18)

  • New chiller cabinets dedicated to fruit and vegetables, at the front of store, (stores received funding of 50% of the cost of the chillers from the Department of Health).
  • Made significant changes to their layout; moving fruit and vegetables to the front of the store, expanding the space for fruit and vegetables and reviewing the range of fruit and vegetables they stocked.
  • The majority of stores were supported at launch by the local PCT and obesity lead with sampling, recipe ideas and initiatives to recycle food waste.
  • They also received a greater share of attention from Stephanie Rice, project co-ordinator, who advised them on issues such as wastage/ marketing.
  • DH also inserted a launch leaflet into Healthy Start mailings for households within a 1-mile radius of the store, advertising the new fruit and vegetable ranges.

Roll out stores (82)

  • Extensive point-of-sale package to enhance the existing fruit & vegetable location in store making the section a destination for healthy food.
  • The stores rebranded existing chillers, added an ambient stand for impulse buys, increased space for and range of fruit and vegetables, and moved the fruit and vegetables to a more prominent position.
  • DH also inserted a launch leaflet into Healthy Start mailings for households within a 1-mile radius of the store, advertising the new fruit and vegetable ranges.

Promotional activities

The 12 initial development stores were launched at the same time as a regional press launch for Change4Life, as the first grass roots project to use Change4Life branding. This helped increase awareness of the branding amongst customers before they came to the store. In addition, then for all stores, Healthy Start mailings were used to advertise the new range of fruit and vegetables, to give an increased customer base. In April, then during Breakfast4Life week many retailers undertook additional activities, (e.g. vouchers in schools for fruit and vegetables). These temporarily boosted sales and engaged retailers in how to improve their fruit and vegetable sector.

Cost of development and roll out stores

The average cost of a ‘development store’ was roughly £5,100, of which £4,800 was the cost of a new chiller, which the Department paid half, and around £300 was Point of Sale materials.

The average cost of a ‘roll out store’ was around £300, consisting of less extensive Point of Sale materials and an ambient stand.

Development store

(Chiller cabinet, much improved range of fruit and vegetables, chiller cabinet located at the front of the store, Change4Life branding,)

Roll out Store

(Improved range of fruit and vegetables,

near front of store, Change4Life branding)

RESULTS ACHIEVED

RISE IN SALES ACROSS DEVELOPMENT STORES

Only 9 stores have data that allow us to compare development store fruit and vegetable sales from between before the start of this project until June 2009.

In these stores, the average increase was 47%. This translates into a cash increase of £230 per store. The average masks differences between those stores which had initially high sales of fruit and vegetables and those which did not.

The stores that had initially high sales of fruit and vegetables saw a sales increase of 43%, which translated into a high cash increase of £363.70. Those stores that had initially low sales of fruit and vegetables saw a much higher % increase of 243%, with a smaller but still substantial weekly sales increase of £95.42.

INDIVIDUAL STORE RESULTS / Sales during the 3 weeks up to and including 01 June 09 / Change between average of weeks of 12/19 October 08 and 3 weeks up to and including 01 June 09 / % change between average of weeks of 12/19 October 08 & 3 weeks up to & including 01 June 09
Silkworth (LONDIS) / £81.33 / £62.33 / 328%
Wardley (LONDIS) / £135.67 / £113.67 / 517%
Blakelaw (SPAR) / £659.00 / £221.50 / 51%
Ashington (SPAR) / £744.33 / £146.83 / 25%
Eston (COSTCUTTER) / £713.67 / £107.67 / 18%
West Conrford (COSTCUTTER) / £833.67 / £290.17 / 53%
Esh Winning (NISA) / £3,011.67 / £929.67 / 45%
South Shield (MILLS) / £176.00 / £93.50 / 113%
North Shield (MILLS) / £145.67 / £112.17 / 335%
Total fruit and Veg Sales development stores / £6,501.00 / £2,077.50 / 47%
Average per store / £722.33 / £230.83 / 47%
Total increase for 4 stores with initial lowest volume / 381.67 / 243%
Av increase for 4 stores with initial lowest volume / 95.42 / 243%
Total increase for 5 stores with initial highest volume / 1818.50 / 43%
Total increase for 5 stores with initial highest volume / 363.70 / 43%

One thing constant across all stores was that the increase in sales took the form of a gradual and continuing uplift in sales over time, not a one off surge when the cabinets were introduced. The particular spike around week 18 is down to the ‘Breakfast for Life’ activities of stores. (The odd pattern around week 5-8 is just before and then at Christmas, which is likely to lead to unusual spending patterns.)

RISE IN SALES ACROSS ROLL OUT STORES

Again, only a limited set of (19) stores have data that allow us to compare development stores sales increased from between before the start of this project until June 2009. These 19 stores were (some of) the Landmark, Spar, and Londis stores. . There was an average increase in sales across the 19 stores between the week before the changes were made to the week of 22 June of £68, or 33%.

The average again concealed two different stories. The Spar stores started from a very high base, and saw a 12% increase on average in sales between 20/04/09 and the week of 22nd of June, a cash rise £106, making it well worth the small investment that retailers involved in the roll out stores had to make. The non-Spar stores started from very low bases or not selling fruit and vegetables at all and saw a rise in cash terms of £43, which was 405%. Amongst stores that had sold nothing the rise was £42 and for those than had limited sales before the rise was £72 weekly.

Week starting
20/04/2009 / Week starting
04/05/09 / Week starting
18/05/2009 / Week starting
22/06/2009
Total Fruit & Veg weekly Sales (£) / £3,513.00 / £3,839.00 / £4,334.00 / £4,651.00
Average per store per week / £206.65 / £225.82 / £254.94 / £273.59
Increase compared with before project / N/A / £20.35 / £49.47 / £68.12
% Increase compared with before project (all) / N/A / 10 / 24 / 33
Total fruit and veg sales excluding Spar / £180.00 / £517.00 / £774.00 / £909.00
Average per store excluding Spar / £10.59 / £30.41 / £45.53 / £53.47
Increase compared with before project (non-SPAR) / N/A / £19.82 / £34.94 / £42.88
% Increase compared with before project (non-SPAR) / N/A / 187 / 330 / 405

The rise took the form of a general and steady uplift as the table above showed. The fact that the results observed are in just two months, and were showing a constant rise in roll out stores, means that if we reviewed sales data over time, we could reasonably expect to see an even greater increase in sales for the roll out stores, in the same way that development stores saw an increase over time.

WIDER BENEFITS

Perception

As noted, as well as monitoring sales data, evaluation was undertaken by Jigsaw on how customers’ perceptions altered for a sample of four development stores in Phase 1. They found both the perception of the stores’ quality and selection of fruit and vegetables and the store in general improved. While the figures for customer perception increased most dramatically after the changes, and fell back somewhat, they have now stabilised at a higher level than before the changes. Some key points are:

  • Those who feel the store was an excellent/good place to buy fresh fruit and vegetables increased from 14/27% to 25/31%.
  • Those thinking that their convenience store was just as good for fruit and vegetables as their main vegetable retailer increased from 52% to 68%.
  • There was a rise of 10% from 55 to 65% in those who had bought any fresh fruit or vegetables from the store.
  • This was further supported by substantial increases in those thinking that the display, selection and appeal of the fresh fruit and vegetable sector in the store was good/ excellent.

The programme resulted in changes towards the view of the store as a whole.

  • Those who feel the store was, overall, an excellent/good place to shop for food rose from 13/30% to 26/28%.

Change4Life – how being part of a wider movement helped

In addition, retailers benefitted indirectly from the use of the ‘Change4Life’ brand.

The research by Jigsaw found that:

  • Around 38% of customers said they had seen Change4Life advertising outside of the store.
  • 6% of customers said they were buying ‘a lot more’ fruit and vegetables from the store as a result of Change4Life.
  • There was a particularly strong rise in fruit and vegetable buying for those who were both aware of the Change4Life campaign and had noticed it at their store.
  • 25% of this group bought fresh fruit/vegetables every/most days, compared with 16% who had only noticed one or the other.
  • Only 9% who had only noticed one or the other ‘never’ bought fruit or vegetables from the store, compared with 14% who had not noticed either the store or wider Change4Life promotions.

This indicates that even for retailers not receiving support via chiller cabinet funding, then use of the Department of Health’s ‘Change4Life’ brand increasing their sales of fruit and vegetables.

Wider total sales increase in Change4Life Convenience Stores

Between November and July this year, then the 9 Change4Life Convenience Stores we have pre and post-change data for saw a rise in their average (reported) total sales from £19,295 to £21,343, a rise of 10.6%.

In the two months between the launch of the roll out Stores we are using data for and when we have latest figures, total sales rose from £18,495 to £19,010, a rise of 3.3%.

This increase in cash volume of sales that development and roll out stores seems much higher than would be expected through ‘natural’ price increases alone. The increase in fruit and vegetable sales are clearly not displacing other sales – and is likely to be contributing to the net increase in total sales. This is particularly true of the development store model, where the greatest changes are made by retailers.

Anecdotally, and from the evidence above, then the Change4Life Convenience Store model is supporting and leading to the increase in total sales. Shopkeepers reported that, for example, people purchasing onions would often buy meat and vice versa.