ConvenienCe set to grow by 1/3!

50

00

18

71

32

50

6

One Stop World

Top ten convenience operators (incl. forecourt stores) store numbers

Top convenience multiples (excl. forecourts stores) store numbers

1217

617

606

432

76 21

Tesco

One  Stop

Martin  McColls

Sainsbury's  Local

M&S  Simply  Food

Whistlestop

Strengths Weaknesses

• Sizeenablestailoringtoalmostanylocation

• Longopeninghoursdrivetrade

• Highlevelsofcustomertraffic

• Embeddedwithinlocalcommunitiesandideallyplacedtomeettheirneeds

• Smallbasketsizeschallengegrowth

• Lackofchoice• Negativeperceptionsaroundqualityandprice

• Independentstoreshaveloweconomiesofscale

• Chilledfoodoffering• Availability

Opportunities Threats

• Improvingofferthroughprovisionoffreshfoodsandextendedservices

• Risingpetrolpricesencouragingmanytoshoplocally

• Capitalisingontrendstowardsimpulseshoppingandfood-to-go

• Improvevalueperception&profitability

• Extendfreshtoincreaseprofitability

• Growthofconveniencerangesthroughdiscountstores

• Conveniencepricepremiumcouldbeerodedovertime

• Governmentlegislationincreasingoperatingcosts

• RemovalofSundayTradingRegulations

• IncreasedTobaccolegislation

Convenience sectorgrowth forecasts to 2017

7%  

-­‐14%  

5%  

12%  

17%  

7%  

-­‐1%  

1%  

4%  

9%  

-­‐20%  

-­‐15%  

-­‐10%  

-­‐5%  

0%  

5%  

10%  

15%  

20%  

Cooked  Meats  inc  Prepack  

Meat  Snacks   Pastry   Natural  Cheese   BuAer  Spreads  &  Mar  

ONE  STOP  

IMPULSE  

Source:    Nielsen  Scantrack:    Impulse  MAT  Value  Sales  %  Change  to  21.07.12.  One  Stop  Sales  In  MAT  to  Week  34  

One Stop World

7%  

-­‐14%  

5%  

12%  

17%  

7%  

-­‐1%  

1%  

4%  

9%  

-­‐20%  

-­‐15%  

-­‐10%  

-­‐5%  

0%  

5%  

10%  

15%  

20%  

Cooked  Meats  inc  Prepack  

Meat  Snacks   Pastry   Natural  Cheese   BuAer  Spreads  &  Mar  

ONE  STOP  

IMPULSE  

Source:    Nielsen  Scantrack:    Impulse  MAT  Value  Sales  %  Change  to  21.07.12.  One  Stop  Sales  In  MAT  to  Week  34  

0  

200,000  

400,000  

600,000  

800,000  

1,000,000  

1,200,000  

01.2012  

02.2012  

03.2012  

04.2012  

05.2012  

06.2012  

07.2012  

08.2012  

09.2012  

10.2012  

11.2012  

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25.2012  

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27.2012  

28.2012  

29.2012  

30.2012  

31.2012  

32.2012  

33.2012  

Revenue  Act   Revenue  LY  

Sandwich  launch  wk  26  May  range  review  wk  22  

£25.3m  -­‐  2012  £21.5m  -­‐  2011  Difference  -­‐  +17.6%  (+£3.8m)    Incremental  sales  coming  from  Sandwiches  Other  categories  driving  growth  are  Produce  (+£1.2m  )  ,  Salads  (£363k),Ready  Meals  (+£263k)        

One Stop World

One Stop World

• Increase basket size • Increase drop size

• Improve choice & extend • Extend range with more chilled range categories

• Shorter leadtime • Shorter leadtime

• Increase quality • Increase quality

• Reduced wastage • Reduced wastage

• Drive fresh food performance • Drive business performance

• JBP • JBP

• Streamlined supply chain • Streamlined supply chain

• Flowers & frozen • Longer term commitment

• Improved forecasting

• Extend Kerry range

Joint Business Aims

Building brand identity in-store

6

Make it easier for shoppers to shop

7

Demonstrating appeal to the health-conscious shopper

8

Exploit technology

9

Targeting the full breadth of impulse

10

Creating a one-stop impulse solution

1

Making checkouts an in-store feature

2

Showcasing product attributes to add theatre

3

Merchandising to inspire and delight

4

Creating event impact

5