Whilst many stages of opening a new sweet or chocolate shop can be logically worked through (finding a suitable shop to rent, finding some good confectionery wholesalers and sweets suppliers, buying some display equipment) coming up with the right sweet shop name might require a little bit more time and thought.

With that in mind and knowing that many of our readers are looking for ideas, Sweet Retailing has put together some general advice on how to name your sweet shop so that you hopefully end up with the perfect name to suit your new venture! We did also write a post in our blog on this subject that might be of use to you.

Before we continue, just a note that when we say “sweet shop” we use the term to generically cover all manner of UK confectionery shops and online businesses such as specialist chocolate shops, more general confectionery stores and online confectionery shops. The principles of business names remain the same for all of these retailing models.

At the end of this article we have created a long list of common words or phrases that tend to get used (or could be used) when naming a sweet or chocolate shop. We hope that you find it helpful along with all of the other UK confectionery resources available within Sweet Retailing.

12 questions to ask

So, you’ve given it a fair bit of thought and you now have one or even a few sweet shop names that you quite like. What next? We would suggest that you honestly answer the following questions with regard to each of your potential sweet or chocolate shop names:

1. Is it easy to pronounce your sweet shop name?
2. Is it easy to spell?
3. Have you chosen a memorable sweet shop name?
4. Can children easily read and pronounce the name?
5. Is it too long? (four or five syllables should generally be sufficient)
6. If your name is a play on words, is it generally understood? (ask a few friends)
7. Does the shop name explain exactly what you do? If you are going to sell just chocolate for example, you might want a more specific chocolate shop name.
8. Are you intending to be a modern or a traditional sweet or chocolate shop? Your name needs to reflect this.
9. Who is your target audience? Children? Adults? A more premium audience? The name for your chocolate shop or sweet shop needs to take this point into account.
10. If you have plans to develop your business over time, perhaps more confectionery shops or a wide product range, can this be done with the sweet shop name that you have chosen?
11. Will your potential name work with your shop signage and as a logo?
12. If appropriate, is a relevant domain name available to fit with your potential sweet shop name?

Make use of what you have

Some people believe that sweet shop names should be pretty straightforward and say exactly what they are. For example The Village Sweet Shop. It is certainly clear and not difficult to understand! Other people feel that something more quirky and individual makes for a better name. For example Sweet Dreams, Cocoa Corner or indeed Auntie Joan’s Sweet Shop.

This brings me to my next point. Make use of what you have. Using your own name (forename or surname) can make for a more individual name for your sweet shop. This can also be achieved by using a title and surname, so, Mrs Miggle’s Munchies. Try also using Auntie, Uncle, Grandma and Grandpa to see what effect it has.

Alternatively, consider using the name of the place where the confectionery shop is or even part of your address (not so good if you have plans to expand your confectionery business to other parts of the UK).

Jumping online

It is highly likely that you will want to do something online with your sweet shop at some point in time and so making sure that you can have a suitable and relevant domain name is worth doing at the same time as setting up your sweet shop. It costs next to nothing to simply register and hold onto your chosen domain name until you are ready.

If one of your chosen sweet shop names is The Village Sweet Shop for example, you might not be able to register villagesweetshop.co.uk but you might manage to have village-sweetshop.co.uk. Of course there are other types of domains to consider as well such as .com, .ltd.uk and more. We would generally suggest sticking to .co.uk if you are a UK confectionery business.

A name such as Graham’s Sweet Shop might be easier when it comes to domain names. Your first search would be for grahamssweetshop.co.uk, which is a little more unique than the many generic names.

The best way forward is to have a list of your potential sweet shop names and get searching to create a list of all possible options. You might even choose to register more than one domain name.

Brands and trade marks

Obvious to many but perhaps not to all, be careful not to use a name that includes a confectionery brand name that might be trade marked. For example we would be concerned about naming a sweet shop Smarties Sweet Shop without checking what the situation is. Another one to be careful of is choosing a name which is already registered as a sweet shop name. We would imagine that Mr Simms Olde Sweete Shoppe would be an example as might SugarCane.

Testing testing

It costs nothing to test the name that you choose for your sweet shop. Ask a few friends, relatives, parents outside school, locals in the pub or a group of children if they are the focus. Make sure that they understand your sweet shop name, can say it, spell it, like it and know what the shop is likely to sell!

Taking the time to test sweet shop and chocolate shop names is really important to ensure that you don’t make a school boy error!

Ensure consistency

Whatever name you decide to choose for your sweet shop or chocolate shop, the most important thing is to be consistent throughout your presentation and communication. Stick to the same name, same presentation and same logo in everything that you do. If you have a traditional image, make sure that all elements of your shop and presentation are traditional too. This will help to get a crystal clear message across to your target audience and in return, sell more confectionery.

The list you have been waiting for!

And finally, the list of common words or phrases associated with confectionery shop names that we have promised you. Many are just words so they might hopefully spark off other ideas for sweet shop names in your mind – that is the intention. Good luck with your new venture and do please use all aspects of Sweet Retailing to develop your fledgling confectionery business.

It’s all about the flavour

Salted Caramel, Coconut and anything nutty are tipped to be the hot chocolate flavours for 2013. Whilst we will all purchase something rather novel once, our traditionalist attitudes where chocolate is concerned take most of us back to more straight forward flavours. As a retailer, you can really benefit from keeping highly tuned into chocolate flavour trends.

Talking texture

Have you spotted chocolate with popping candy in it? Matt assures us that there is a trend for chocolate that offers us something different in its texture too, apparently offering greater sensual enjoyment as we consume our beloved treat.

Can healthy chocolate exist?

Recent reports from the US indicate a growing chocolate trend towards the roll out of products ‘which are better for you’ i.e. chocolate that contains less fat, less sugar, fewer calories, and better-for-you ingredients. Chocolates which are all-natural, and have no partially hydrogenated oil, no artificial ingredients, no GMOs, no preservatives, and a low glycemic index could gain prominence in the years ahead and become a key chocolate trend to follow.

Less is more

Formats of chocolate that allow for easy portion control are increasing in popularity. We all love to enjoy a regular chocolate treat but we are becoming slightly more aware of the term “in moderation”. Products that lean towards this chocolate trend in their packaging and presentation will stand to perform well.

Image matters

OK, looks are only skin deep, but if that helps the curious shopper to pick the product up off the shelf and then go on to buy it, result! Chocolate consumers buy with their eyes first and foremost. They might then make a decision based on the information on the product or the price, but without a “stand out” product, it won’t even get to that final decision making stage. I am not sure if this is a chocolate trend for 2013 or an essential piece of advice actually. Make sure your chocolate looks great!

So there are some interesting chocolate trends for 2013; some might be obvious, others not so. A useful insight from a man in the know though.

Recent independent research has shown that up and cross selling is one of the biggest missed opportunities by retailers of all sizes. In fact, it’s probably the biggest issue of all for convenience and independent retailers, where increasing average sale value can be a matter of survival.

It doesn’t matter how big or small your company is, there is always the potential to increase revenue by training staff to upsell and do it in a way that isn’t pushy or damaging to your customer relationships.

At Beyond the Box we work with large retailers and brands to help ensure retail staff are in the best position to increase sales revenue. Some might say that retailing in independent and convenience stores is a million miles away from what happens on the high street, but our experience tells us otherwise.

In fact – big or small - there are many transferable skills that can be taken from the multiples and nationwide retailers and applied to small sweet retailers and vice versa, as the principles are fundamentally the same. It really doesn’t matter if it is the owner manager who needs training, or a team of sales staff. 

The result to your business can be significant – well-trained staff generate valuable income and positive perceptions about your customer service. With a little time spent training staff and by following these simple tips, you can easily incorporate an up or cross sell to your business model.

At the very essence of the upselling challenge is the retail staff’s ability to showcase similar products that customers might be interested in based on their original choice. This is something that every retailer should be doing no matter how small the product may be.

By doing this you are getting an empowered and happy customer, tales of excellent customer service and more revenue in the till!

1.      Upselling

Identify the products that offer an upsell opportunity in your store

For example:

-          A small bar of chocolate to a larger bar

-          A small bottle of water to larger bottle of water

-          A single magazine to a magazine multipack

-          A single pen to a twin pack

Customers have to have a reason to upsell so when you have identified your up sell items consider how you can justify them:

A small bar of chocolate at the average 65 pence in comparison to offer on a 120g bar at £1. Justify the upsell by explaining how much more chocolate they will be getting for less money! Follow with ‘Go on treat yourself!’

Small bottle of water to a larger bottle of water. Brilliant when we do eventually get some hot weather over here. Customers will welcome your advice to save money and drink more!

Magazines – for just a little more you can enjoy hours more reading when you buy the multipack.

Single pen to twin pack – so easy to lose a pen, why not have one on stand by or keep it in the car or your handbag so you don’t have to rush out to buy one next time.

2. Cross selling

Identify the products that offer a cross sell opportunity in your store.

For example:

If a customer is purchasing gift-wrap, you can suggest a gift tag – this one is easy to presuppose by saying “Shall I pop the matching gift tag in the bag for you?”

When a customer purchases a soft drink, suggest something savoury to make it a full snack. They might be delighted when you ask if they want to make it a full snack by offering the purchase of a packet of crisps.  This is simply done by asking ‘Would you like something savoury with that?’  TOP TIP - nodding at the same time always adds to the success!

When a writing pad is bought, suggest a pen so that they can start making notes straight away. They might have plenty at home but we all love owning ‘new’ so try saying;  “would you like a new pen to go with your new pad?”

-          For a pencil purchase, an eraser and a sharpener can be suggested. A gentle reminder about the pencil needing to be sharpened will help you to sell more pencil sharpeners;  “shall I pop a sharpener in for you too so you never have the problem of a blunt pencil?” An eraser is also good to have on hand “the great thing about a pencil is you can quickly remove mistakes – so long as you have an eraser, shall I pop one in the bag for you?

The important thing is to know your product and identify what additional items will complement it, enhance it and appeal to the customer.

3. Special Offers

Special offers are also a great way to up sell to a customer as people are drawn to them and love to get a bargain.

When it comes to special offers, always make sure to:

-          Take advantage of supplier merchandise

-          Place them in a prominent place

-          Tell your customers about them – “We have a great offer on, 50 pence off these bars of chocolate.”

-          Direct the customers attention to them at all opportunities – “Did you notice we have a fantastic offer on chocolate, how do you fancy treating yourself?”

4. Timing and Language Used

It is important to introduce opportunities to up sell and cross sell at a relevant time, and in an appropriate way.

Here are some great tips:

a) When introducing an offer, say: “We have a great offer on these at the moment, buy 3 for the price of 2, shall I pop another 2 in for you so you get one free?”

b) Avoid negative comments. When you introduce an up sell or cross sell product you must do so positively - the more positive you are the more likely your success will be.

For example:

“I don’t suppose you would want a snack with that drink?”

The above will likely result in an agreement, so you would be right, they didn’t want one!

c) Positive phrases and positive body language lead to positive results.

For example, a slight nod of your head in agreement and an action to select a gift tag as you say:

 “Shall I get you a matching gift tag with that?”

This is more likely to gain a “Yes” response.

We all know that service with a smile and a friendly approach goes hand in hand with product knowledge to produce positive results.

Beyond The Box are experts in the area of field marketing and retail training and these handy tips on cross over sales and up selling should help you to enjoy additional revenue in your store.

Equally you will profit from the improved customer service you have delivered and they will remember you positively for that.

Good Luck!

If your product would benefit from additional support to push it out of the shops and into the hands of customers then Beyond The Box can work alongside you.

Beyond The Box offer bespoke training solutions to some of the biggest names in retail such as Dixons, Tesco and The Cooperative Bank. They provide training with a difference that can positively change people on a professional and personal level, and empower them to achieve great results and business growth.

More information on Beyond The Box and their range of services can be found at www.beyondthebox.co.uk or call 0845 270 6520

More than two in five Britons (44%) feel less confident about their financial position compared to the start of the year, 47% expect the UK to experience a double dip recession and 51% are critical of the Government’s handling of the economy – according to new consumer data from HPI research.

The findings are the latest from HPI’s rolling ‘Coalition Consumer’ study, which explores people’s outlook under the Coalition Government and tracks their attitudes, coping strategies and shopping habits. In the latest instalment, HPI asked a UK representative sample of more than 1,000 adults to comment on their financial position, their economic outlook, their views on who was responsible for the economic crisis and what would help the country get back on its feet. The findings provide a snapshot of the consumer mood. Whilst some are adopting savvy coping strategies, others are struggling and a strong sense of anger towards bankers and politicians emerged.

Attitudes define four consumer mindsets

Over six cycles of tracking research, spanning three years, HPI has identified four clear consumer mind sets in terms of how people feel about the position they are in. In each instance, the degree of control exercised correlates with anxiety levels.

Sufferers: 21% of people have already made all the financial cutbacks they can, are struggling financially and are fearful of what the future holds.

Squeezed: 31% of people are worse off but are taking robust action to buy cheaper brand goods, buy second hand and have switched allegiance to cheaper shops.

Cautious: 34% of people are not seriously worse off but have become much more cautious. They watch what they spend and are mindful to save a bit more if they can.

Insulated: 14% claim they are not personally affected but are aware of the problems in the wider economy.

Significantly, over the last three years, the proportion of people suffering has doubled and the insulated group has halved in size.

Across the board, there is growing anxiety. Despite the remedial steps taken, only 29% of people said they felt more confident about their own financial position compared to the start of the year, compared to 44% who felt less confident.

A sign of people living on the financial edge emerged, with the continual rise of people drawing on savings to support everyday expenditure. Between October 2009 and February 2012 the percentage of adults using money they would have saved for day-to-day expenditure has soared by 48% - from 25% of adults to 37%.

Economic confidence

When asked about the UK’s prospects for a double-dip recession, 47% of respondents expected one, whereas 12% did not – and 42% said they were not sure.

Only 18% of adults said they felt more confident in the overall UK economic situation than they did at the start of the year, 57% felt less confident. This issue was not just limited to those that were personally worse off. Whilst 70% of those that said their income had fallen also felt less confident about the economy, 36% of those whose disposable income had gone up also lacked confidence in the economic situation.

The HPI research also dashes any notion that consumer confidence is unduly affected by gloomy headlines. Only 4% strongly agreed that the recession wasn’t as bad as portrayed by the media - with 56% saying the situation was probably worse.

Government’s handling of the economy

When asked whether the Government was doing a good job in its handling of the economy, 51% disagreed, 22% agreed and 28% were not sure. After recent controversy over the Budget, the popularity of the Government’s handling of the economy related closely to people’s own financial position. Those whose disposable income had gone up in recent months were most likely to think the Government had done a good job (34%), whereas those whose disposable income had shrunk were most likely to disagree (60%) – and half of those disagreed strongly.

Only 20% of people felt the banks had cleaned up their act since the economic slowdown. One in two people (49%) thought banks had not cleaned up their act – rising to 65% of those that had been hardest hit: the sufferers that had already made all the cuts they could to their expenditure.

Prudence returns

One thing that united people was being more careful with how they spent their money compared to six months ago (74%). This approach was prevalent among groups that regarded their disposable income as having gone up (69%) as well as those for who disposable income had gone down (83%). The findings here point towards sluggish consumer spending in the months ahead. HPI’s research suggests that people’s buying habits involve clearly definable groups that are putting purchases off, shopping around more and more likely to buy second hand.

Blame and growth

When the public was asked which ONE group they most blamed for making the recession worse, 19% mentioned UK bankers and City financiers, 13% the previous Labour Government and 12% said US bankers and Wall Street financiers. Less than one in 10 respondents (9%) blamed consumers for spending beyond their means.

When asked which ONE factor would get Britain out of its economic difficulties the top five responses comprised:

1. Better regulation of financial industry and bankers 15%

2. Government policy to cut the UK deficit 10%

3. UK pulling out of Europe 10%

4. Recovery in Europe 9%

5. Promotion of growth rather than austerity measures 9%

Despite the excitement and anticipation about the Olympics or the Queen’s Jubilee celebrations, very few think this will spark economic confidence.

Consumer attitudes on what would kick start the economy were coloured by their own sense of optimism. Those that were pessimistic said the most important factors were the Government cutting the deficit (16%) and waiting for a recovery in Europe (13%). People with a more optimistic outlook focussed on regulation of the Banks (16%) and promotion of growth rather than austerity measures (13%).

Latest research from Mintel finds around a quarter (25%) of all global chocolate launches in 2011 were for chocolate products with a “seasonal” positioning e.g. Christmas, Easter, Halloween themed etc. While global new product chocolate launches declined by 7% between 2010 and 2011, products with seasonal claims increased a tasty 6% over the same period. And it seems that this year has seen a real hive of activity around Easter chocolate NPD as research shows that there has been a spectacular 45% rise in the number of Easter products launched globally during 2012 compared to Easter 2011.

In terms of value, last year the seasonal chocolate market represented a $4.9 billion market in the US, up 6.4% on 2010; in the UK, the market is equally robust with 2010 sales at more than £500 million.

Marcia Mogelonsky, Director of Insight for Mintel Food and Drink, said:

“This year has proved to be a real hot-bed of activity for Easter chocolate NPD. Seasonal chocolate is, if anything more “recession resistant” than the overall market, as the products have broad appeal as gifts for a wide range of recipients, from friends to relatives and co-workers. Easter has consistently led other holidays in innovation - and in sales - as it is a holiday with a strong affinity for confectionery through gift baskets, egg hunts, and other family-focused traditions.”

Today, the US accounts for the largest percentage of all seasonal launches at 18%, while the UK is the second most active region accounting for 12% of all launches, meanwhile Germany accounts for 10%. Canada has seen the biggest increase in seasonal activity, increasing 89% between 2010 and 2011, today Canada accounts for 7% of all NPD activity. Other impressive performers between 2010 and 2011 are the UK, where activity has increased by 53% and France where there has been a 41% increase in NPD activity.

However, while seasonal activity is thriving, the number of seasonal launches aimed at children aged between 5 and 12 has declined in a number of regions over the past 12 months. In 2011, child-focused launches were down 62% in the USA; a pattern which is also seen in Brazil (-62%) a nation which is also struggling with controlling obesity levels. In the US, the decline in launches is likely to be tied to a shift in gifting habits. As many as 21% of parents report that over the past year they have switched to giving their children healthier treats than chocolate or candy for holidays. Meanwhile, in the UK the number of seasonal launches for children aged 5-12 has remained static.

“This change is not enough to affect the overall market in any significant way, but could suggest that manufacturers will be paring down their efforts to introduce seasonal products aimed directly at children in the next few years. It will be interesting to see if other markets follow suit in the future, as childhood obesity continues to be a concern.” Marcia continues.

While seasonal chocolate has been the star performer of the industry, the research shows it has been less than positive for posh chocolates as premium activity slowed in 2011. Between 2010 and 2011 launches of premium chocolate products declined 10%. In the US, the biggest market for new premium launches, new introductions declined by 28%. Innovation in the UK (-31%) and Australia (-24%) also slowed, but Japan, known for its highly dynamic approach to new product launches, continued to bring new premium products to market at a rapid pace, with activity increasing 71% between 2010 and 2011.

“The decline in launches of premium products is due, in part, to the challenges in the cocoa market. Raw materials from more exclusive regions in South and Central America, Asia, and Africa added to the price of premium products, and gave manufacturers pause to consider whether forays into higher-priced cocoa would grant an appreciable return on investment. The pull-back on launches did not stem creativity however, and premium launches over the year were notable for inventiveness. Chocolatiers experimented with a broad range of new ingredients, including a greater foray into herbal and floral notes, as well as extensions on savoury or spicy themes (e.g. bacon, curry, and chilli). The quest for rarer sources continued, even with high prices, and cocoa from the Caribbean and Central America began to appear in a number of countries.” Marcia concludes.

Dr Steffan George, development director of the Master Locksmith’s Association looks at the security issues which small and independent UK retailers face and looks at the possible impact the Olympics could have:

“The Olympics are going to bring a huge influx of people into the UK, and not just to the site of the games. Many people will use their visit as an opportunity to explore, both within London and throughout the country. So it’s important that retailers, however small their shop, have thought about how they are going to cope with the sudden increase in customers and taken steps to ensure their security is adequate.

“It’s well worth considering engaging extra staff or asking them to double up on the rota so you can ensure extra vigilance when there are lots of customers in the shop.

“If you’re expecting a significant increase in volume of people in your premises you may want to check your fire risk assessment and ensure that any emergency exits you may have meet requirements.

“The locks to your shop should always be a main priority; if the basics aren’t right you can leave yourself wide open to risk. Consider when your locks were last replaced. It’s a frightening thought that copies of the keys to your shop could be in circulation without your knowledge. Consider having a patented lock system installed, where keys can’t be copied without providing proof of ownership. This means only those you authorise can access your premises and past owners or employees cannot gain entry. It’s advisable to get an MLA licensed locksmith to check your locks and make sure they meet your insurance requirements, are in good condition and well fitted.

“Windows can be smashed to gain entry, so consider adding reinforced glass if you don’t have it already or even using grilles at night. Make sure you always clear away delivery crates and other debris from outside the shop so they cannot be used to gain access.

“You may well already have an alarm system fitted, but it’s essential that you regularly change your alarm code to ensure that nobody could have memorised the code and passed it on.

“If you take large volumes of cash, review how often you bank the cash to check you aren’t laying yourself open to risk. Alternatively you could look into having a safe of the appropriate cash rating professionally installed. It’s also worth checking that staff are trained to identify counterfeit notes.

“One of the most cost-effective ways to increase retail security is to work alongside neighbours to share resources.  Retailers can join forces to boost security: good quality locking systems and secure external doors, grates,  fences, lighting and CCTV can be installed throughout a row of shops so all outlets are protected and cost can be divided. CCTV and dusk-to-dawn lighting in particular can act as deterrents as well as monitoring aids, which in turn helps create a good reputation for the area.

“By seeking expert advice and ensuring all security measures are up to date, you can rest assured that you are not only acting responsibly towards your staff and customers but that you’re also safeguarding your shop”.

In an effort to combat the economic downturn and to save their money, consumers are increasingly opting to stay at home for a 'night in' rather than going out. This is true whether they are entertaining guests or relaxing. Confectionery sweetens this experience, yet everyone munching on their own chocolate bar is not very social; as a result, there has been a rise in the demand for sharing bags. 2011 saw a surge in the introduction of this format and this trend is set to continue in 2012, as the crisis persists. Rather than developing new products, confectionery manufacturers have transformed existing ranges into bite-sized formats, which are ideal for sharing. 

It is safe to say that the British population loves confectionery. In June 2011, TGI conducted a survey on behalf of Key Note which revealed that 88.6% of respondents ate chocolate bars and other chocolate items, excluding boxed chocolates, in the 12 months preceding the survey. This phenomenon has naturally contributed to a certain degree of the industry's success. However, because the market is saturated with products, manufacturers have had to get creative to make their goods stand out on retail shelves. Dynamic and interactive marketing campaigns are on the rise in the UK confectionery industry. The internet and smartphones have opened a channel of creativity through which confectionery manufacturers can build a relationship with consumers beyond the product, using mechanisms including games and votes. In an industry where product innovation is limited, these kinds of campaigns are the way forward, as they breathe excitement and energy into the market beyond consumption.

The growth rate of the UK sugar confectionery sector was higher than that of chocolate in 2011 because of consumer perception that these products are the healthier option. While there is an increasing amount of 'healthy' confectionery, Key Note does not believe this is a dominant trend. When consumers indulge in confectionery, most want to treat themselves rather than be preoccupied by the amount of fat in their sweets or chocolate bar. As a result, UK confectionery manufacturers have opted instead to produce confectionery that uses more dark chocolate, which is free from artificial colours, flavours and preservatives, or is made using Fairtrade ingredients.  

In spite of high demand and sales, 2011 has not been an easy ride for UK confectionery manufacturers. The price of sugar has shot up drastically and production costs are weighing profit down. Genuine innovation is rare, meaning that manufacturers have to devise new ways of keeping the spark in the industry. The negative connotation of confectionery as a contributor to growing obesity in the UK also threatens the industry.  

Still, Key Note concludes that 2012 will be a good year for industry. Sharing packs, interactive campaigns and price-marked packs will be the primary contributors to this growth. In addition, UK confectionery manufacturers will capitalise on the year's events, including the Olympics, to further drive sales. Beyond 2012 and based on the current market and conditions, Key Note anticipates that growth in the UK confectionery market will be slower, reaching £6.77bn in 2016.

The full Key Note report is now available to buy at a cost of £411.

“From our research we have spotted some of the things that are most likely to leave the shopper annoyed and frustrated when they least need to be. Christmas is a hectic time and anything which can make that endless list of jobs to do that bit easier has to be a good thing," says Feefo’s managing director Andy Mabbutt.

Feefo Top Ten:

1 Poor communication from suppliers when deliveries are late or even cancelled.

2 Not seeing the product before it arrives and it not living up to its description

3 Having to wait in for signed deliveries costing supplier and customers

4 Goods being damaged in the post

5 Complicated returns procedures

6 Missing parts - particularly from furniture but also toys and the difficulty tracking them down.

7 Multiple deliveries and not being able to organise all parcels for one drop-off slot

8 Accountability and being left with fake or goods below safety standards

9 Unhelpful delivery drivers

10 Having to provide too many details just to shop. Lengthy registration procedures.

Phil Duffy, partner at MCR, said: “UK retail sales rose 0.6% in October from the month before, according to the latest data. Analysts had expected sales to fall, but a spate of pre-Christmas sales and promotions helped to lure shoppers, with prices down 0.4% in the month. But this is not the whole picture as we don’t have real-time information about the margins being achieved.

“The Local Data Company has found that 14.6% of retail premises in the UK are now vacant, indicating that around 50,000 high street units are empty. The Javelin Group has predicted that if current trends continue, a quarter of all non-food retail outlets in the UK could be vacant by 2020. The impact on jobs, landlords and suppliers to the sector such as shop fitters, could not be starker.

“And yet if you look at British shopping habits then the picture changes. In a recent study by Sterling Commerce 80% of consumers stated they wanted a choice of shopping – in-store, by telephone and online. This has been backed up by a study from ComStore which found that 97% of consumers now expect a seamless shopping experience across online and offline channels.

“The message is therefore clear: if the High Street is to survive then the sector needs to address the changing habits of the market and adopt a ‘bricks and clicks’ business model. Today’s consumer wants the flexibility this affords and retailers need to address this head on.

“Another major trend is the rise of what we would term ‘destination shopping centres’ and again this is going to affect not only shopping habits but retailers as well. Over the past decade the rise of the out-of-town shopping centre has been almost unstoppable and in many cases this has led to the rise of retail citadels such as the Trafford Centre in Manchester or even Westfield in West and now East London. Those retailers that focus their energies in these hot spots are going to survive and arguably survive well in the current economy.

“There is no doubt that these destination shopping centres have affected historic high streets, but their growth is now being limited. Central and local government is keen to maintain town centres and there has been a marked increase in legislation to discourage out-of-town development and encourage investment in traditional shopping locations. Indeed if one looks to Manchester, the Trafford Centre has been seen as a vital element in regeneration.

“So I would argue that the UK retail sector is far from dead and buried. It is in fact in a period of incredible change. Those retailers that keep their nerve, focus on adapting to changing buying habits and adapt, will be the ones that survive the current economic challenges. For government – both local and national – the temptation to simply develop a new policy document must be resisted. Let the market adjust and put the consumer in the driving seat and the sector will rebound.”

Whatever figures you follow, they all talk about growth in both value and volume. Kantar Worldpanel puts the chocolate market up 7.1% in value and 5% in volume whilst IRI suggests that value growth is more in the region of 6.6%. Growth anyway. These figures clearly look at the market as a whole – multiples, specialist retailers, sales through leisure outlets and so on and the results of our recent Chocolate Poll suggest a little more caution about how the market is growing. So whilst all might not be rosy for everyone concerned, the overall trend is an upward one.

We spoke to a number of chocolate companies, both small and large, to consider how retailers might want to make the most of the chocolate market in the months to come. We also asked them for their opinions on emerging trends and opportunities.

Cracking Christmas

With Christmas firmly on the horizon, most would suggest that a varied range of chocolate to suit all pockets and purposes is the way forward. The top season for chocolate sales, Paul Morris from The Chocolate Café urges that “retailers need to have a varied offering ranging from lower priced stocking fillers to higher priced indulgent chocolate gifts and everything in between”. Divine Chocolate would agree with this stance and Alistair Menzies, head of sales and marketing, points out that a range should cover “all Christmas chocolate requirements”.

But how do you know what all of these requirements are? “Retailers should be developing the relationships that they have with customers” says Cathy Cheung, Chief Chocolate Strategist at Rococo Chocolates. Fair point. The more that you can understand your customers’ needs and requirements, the better you can serve them resulting in higher sales and the greater likelihood of customer loyalty.

Helpfully, Mars highlights four key purchase needs at Christmas time:

•   Seasonal thank yous

•   Big family sharing

•   Stocking fillers

•   Seasonal self-eat treats

You might also put advent calendars on this list and possibly tree decorations.

Mars confirms that 65% of boxed chocolate is sold at Christmas time, which is a pretty huge slab of the gift box market. The need for a full range covering all price points cannot be stressed enough.

Advice is one thing but what are these chocolate companies actually doing to help? Well, The Chocolate Café is offering staff tastings to its retailers so that they are up to speed on the range. It also provides bespoke retail displays and short term promotions when required. Rococo Chocolate has developed a new point of sale leaflet that tells the Rococo story, endorsing their chocolates with provenance and quality. Divine also offers point of sale to its stockists, in addition to sending out a regular newsletter and running a stockist of the month campaign. Being the largest of the companies that we talked to, Mars offers a wide POS range to its retailers.

So to maximise the potential of Christmas in a nutshell, know what your customers want, offer a full and visible display that covers all requirements and understand what you are selling. Sampling can also clearly help, especially for a chocolate that is slightly more unusual and we all like to see a good promotion!

Do winter nights mean more chocolate?

All of the companies that we spoke to feel that without doubt the trend of buying chocolate to share with family and friends at home is on the rise. Some figures from Mars suggest that sales on “in-home leisure” are set to grow steadily for the next three years – and that includes chocolate.

Staying in is the new going out if you follow. The Chocolate Café says that in its own store, sales rise over the weekend as a result of the “big night in” with indulgent 100g bars becoming an affordable luxury when a meal out is not. Rococo Chocolates also suggests the need for a decent range of dinner party chocolates – the perfect small gift to take along when eating with friends at their home.

Mars has gone large on “big night in” and launched “Bag a Million Movies”, offering consumers the chance to win one of a million DVDs. It urges retailers to get behind the promotion and cash in.

Trend spotting

We asked for comments on the many arising opportunities in the chocolate market. Paul at The Chocolate Café suggests that dairy free chocolate and chocolate made with stevia are very niche opportunities in the UK. Cathy at Rococo in fact questions whether dairy free chocolate is actually declining in the UK. With regard to stevia however, Rococo is certainly looking into the opportunity though not yet committing to it.

Premium chocolate is considered an opportunity by the majority (super premium remains relatively niche for now), with Alistair at Divine surmising that “premium chocolate is likely to stay buoyant in a tough economic climate as it represents an affordable but more special treat (when others are too expensive) to be savoured, enjoyed or shared”. Paul from The Chocolate Café has this to say. “Whilst most of your customers might not be able to afford to drive the best car or stay in the plushest hotels, they can enjoy the very best chocolate”.

So premium gets a big tick, with the only interesting question being what is the perception of “premium” for your own customers?

What about British chocolate? Undeniably an opportunity at the higher end of the market, Rococo’s Cathy Cheung highlights a potential issue. “It will continue to be an uphill battle persuading anyone but the British that we are now making some of the best and certainly the most interesting chocolate in the world”. So all would seem to be well on this trend if you are a retailer wishing to sell only to the British public.

Finally we mentioned Fairtrade. With mainstream brands from Mars (Maltesers will carry the Fairtrade mark from 2012, representing a 10% increase in total UK Fairtrade sales) joining many others from Nestle and Cadbury, Fairtrade is no longer something just for niche players to contemplate. A long standing advocate and provider of Fairtrade chocolate, Alistair Menzies from Divine assures us that most retailers now stock some Fairtrade chocolate by default and awareness of the accreditation continues to grow.

Contrary to such opinion, Paul Morris says, “In my experience, the vast majority of customers continue to be confused by ethical marks such as Fairtrade and Rainforest Alliance. In our own store sales of organic and Fairtrade chocolate has actually decreased and now represents less than 10% of our total sales revenue”.

All good interesting stuff. There is no certain formula that will help you to grow your chocolate sales over the coming months. Christmas of course is a “no brainer” and hopefully you have that pretty much in hand by now. If not, for goodness sake make it your priority!

With regard to looking at how you can develop your range and your own local market, whether you are a lover of the big brands or more into premium chocolate bars, the joy of chocolate retailing is that you are generally able to try something in a small way initially and see what your customers think. After all, they currently spend in the region of £3.5 billion on chocolate annually so their opinion has to count for something!