Data collected by industry observers like Kantar Worldpanel and AC Nielsen is released monthly and provides a useful benchmark for local store owners. But you have to keep watching the numbers as they are not as dramatic as you may think.

The big message from the Kantar team is that grocery inflation is running at 5.2 per cent but sales are only up by 3.8 per cent. While the big winners in its August analysis are the discounters – Aldi and Lidl – it estimates the sales rise at symbols and independents is 13.4 per cent across the 12 weeks to 7 August.

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However, if you average the market share positions for 13 Kantar reports to smooth out seasonal fluctuations, you find that Asda has lost 0.3 per cent market share and Sainsbury’s has picked up 0.2 per cent, leaving the big four flat. The Co-op has lost 0.6 per cent, while Waitrose and Iceland have picked up 0.1 per cent and Aldi and Lidl 0.2 per cent each. Independents and symbol retailers share is flat, which may be good news as over two, three or four years the sector has lost market share.

Costs rising ahead of inflation

What does this mean for your shop? Compare your numbers for the past month with the same period last year. If your sales are up by more than 5.2 per cent then you are growing sales. But be careful. Your assortment of products may include some where costs are rising ahead of the grocery inflation figure. Confectionery, soft drinks and snacks are areas where manufacturers have pushed through bigger price rises, for example.

It also means that you are doing OK if you are retaining shoppers. However, that is no reason for complacency. Think about what the supermarkets are doing to attract shoppers. Cutting the price of fuel. Price matching on key brands. What value deals are you offering shoppers? And how committed are you to keep the deals long term?

Over the past year, according to Asda, the multiples have grown volume sales by 0.3 per cent. On the back of all their investment, that shows how tough the market is. How can you respond? Think about how good you are at sales disciplines? How well do you communicate promotions to shoppers? Do you ask whether shoppers would like to buy anything else while they are in your store? It may be hard work but it is essential.

We have four, possibly five, big groups who dominate the market alongside a small but vibrant small sector comprising about 50,000 independents. Would you call four or five operators an effective competition? In big cities maybe, but in smaller towns this could effectively be a duopoly and near monopoly.

You also have a situation where the big groups adopt predatory pricing to kill off the competition and once the competition is gone, go back to higher pricing. Is this ethical or acceptable in a free market economy?

Surely not, but then we need ultra strong regulation. Do we have this? Not if you read the story about Tesco who have been slashing prices in Scotland in breach of the promise they made to the Competition Commission to maintain a uniform pricing policy. Industry figures indicate that Tesco prices in Scotland are generally 5% lower than competitors.

Tesco claims that there was a computer glitch and systems failure. A cynic however, might regard this kind of behaviour as an attempt to capture a higher percentage of the market.

No wonder the Labour opposition has called Tesco “an almighty conglomerate”.

One retailer, Arul Masilamany in Chigwell, has taken on the Tesco Express next door and invested £150,000 on refitting his store “top to bottom” — he took £42,000 in his first week. Well done Arul!

Long may we continue to have these bold and imaginative entrepreneurs to take on the almighty conglomerates.

Mr Murdoch has been very successful and retailers need to acknowledge that over the past 40 years he has made them a lot of money, particularly in the UK, through his investment in and vision for national newspapers. A chart in the FT provided an interesting commentary on the development of Mr Murdoch’s company. In 1980, newspapers and magazines accounted for 90 per cent of his revenues. In 1990, they accounted for 71 per cent. In 2000, they accounted for 45 per cent. In 2010, 11 per cent.

In part, the decline is explained by the expansion of his companies into broadcast TV, cable networks and films. In 1990 they were worth 1 per cent, 0 per cent and 8 per cent of his business respectively. By 2010 they were worth 5 per cent, 48 per cent and 29 per cent.

Print is the bedrock upon which the business was developed but the skills he learned in publishing newspapers were applied to audience development on TV and movie screens around the world. The newspapers funded the growth of the business and are still contributing to the group, even if the outlook is less rosy.

The news-based local shop has been the most successful across the same period of time. In the 1980s, just selling newspapers and magazines was the bedrock of a successful retail operation. In the 1990s, snacks and soft drinks and alcohol needed to be added. By the 2000s, if was full scale convenience.

Unlike News Corporation, most local shops are not scalable businesses. However, collectively independent retailers have had to change their mix to attract the audience of local shoppers. But this does not mean that you need to throw away the business model you started with.

I visited one shop in the Midlands recently and observed the fantastic fruit and vegetable display at the back. This looks fantastic, I said. Yes, said the owner, it is where my dad started out and he loves making it look good. It still contributes to the bottom line too!

It is easy to get carried away with fashion statements. Sometimes you need to ditch yesterday’s lines. Sometimes you need to retain them – as long as there is sufficient shopper demand. To use the language of the City, newspapers are still a hold.

Ensure your range is made up of 80% best-selling products and 20% new lines

Multiface your bestsellers in all categories

Identify your bestsellers then build the best range for your specific customer base

Keep abreast of the latest products and current consumer trends

Use your own or manufacturers’ planograms

Group products together by category

Use promotional materials to highlight promotions

Rotate stock regularly to avoid out-of-dates

Ensure that your products are clearly priced

Sponsor a sports team, get involved in a good local cause, or support community events

Go the extra mile by offering regional products, home deliveries or additional services

Understand which issues affect your shoppers and get involved

See even more of Kate Woolf’s visit to Dereham News in our video version of this See My Shop visit!

Offer healthy and locally-sourced produce and consolidate local deliveries to reduce carbon emissions

Invest in environmentally-friendly solutions. Use energy-saving light bulbs and recycle your cardboard

Encourage customers and staff to live a healthier lifestyle by stocking healthier alternatives

Get involved in local and national initiatives such as Change4Life and encourage staff and customers to do likewise

Consider introducing a reward scheme for customers who re-use their shopping bags

See even more of Kate Woolf’s visit to Dereham News in our video version of this See My Shop visit!

Know why and when your shoppers visit your store so you can plan your layout

Locate key categories so they are easy to find and drive impulse sales

Ensure high-value products are positioned in highly-visible locations

Make your layout accessible to all

Focus on keeping the store tidy and well stocked

Train your staff to be friendly and welcoming to all customers who visit your store

Show that you and your staff have good knowledge of your products and your local area

Offer services that go beyond the expected standard product range

Know the various customer profiles of your store

Use POS, clear pricing, posters and seasonal promotions to highlight your store

Use local press to promote your products and services to your community

Work with other local businesses to gain publicity for your store

Make use of seasonal events and trade-supported initiatives

Innovate your core categories to increase the appeal of your store

Tailor your offering to give customers choice and value for money

Introduce new categories and services to meet your customers’ needs

Ensure that your products are clearly priced