Orford General Store - Nominated for National Village Shop of the Year |
The beating heart of any village is the
village shop. In Orford we are
privileged to have one of the best.
That’s not just my opinion; The Orford General Store has been shortlisted
for the Countryside Alliance’s Village Shop of the Year award. This week I caught up with the owner, Penny
Teale to find out what her formula was.
DSFH: “You took over the Orford village
shop a year ago. But 600 rural shops
close in England every year, so my first question has to be, are you mad?”
PT: “I don’t think so. I gave up a lucrative career in corporate
retailing to take on this business. This
isn’t a hobby, it’s a livelihood. You don’t make that kind of decision without
doing a huge amount of research and being pretty sure that you can make a go of
it. Many of those failing shops may not
have been run very well or with a keen eye on costs and the customer offer, but
I realized that it was possible to take the things that supermarkets do well
and apply them to a small business. I
used my retail experience to put in solid processes and apply up to date
technology. I try to keep on top of my stock control
and my market as Tesco or Sainsburys would, but I am able to combine that with
a business that has great local product and personality.”
As if to back this up she starts to spout a
range of facts and figures.
“My catchment area is 5 or 6 miles. People come from 5 villages and those
villages contain 2000 people”
DSFH: “But what about that market? You’ve actually got a number of very
different constituencies within a village like this?”
PT: “Three. (She nods her head) There are
the local people who rely on the village shop for everyday provisions. They buy little and often. They are very price conscious and quite
conservative. They are really important because
they are here all year round. I actually
keep a close watch on supermarket prices.
We can’t afford to be too far out of sync. Even though a trip to Woodbridge or Saxmundham
is likely to cost £5 or £6 when you add up the fuel and total cost of running a car, people
don’t look at it that way. Also supermarkets
aren’t as cheap as you think. They use a
variety of tricks such as hi-lo pricing.
They put things on the shelf at a high price so they can then discount
them later.”
“Then there’s the ‘second homers’ and
visitors or what I call the ‘four and
threes’, people who call Orford home but in reality they spend half the week in
London. They are almost the exact
opposite. Price is less important to
them but they demand quality and they want to be delighted by the range, local
product and high quality veggies. The
third group are die-hard Tesco or Waitrose shoppers, who dip in and out around
their weekly shop.
DSFH: “So is there a conflict in serving
such different needs? After all you have
to decide what you give shelf space to?”
PT: “Not really. I use the ‘good, better, best’ rule to all of
the ranges. For instance I re-jigged the
wine section. Now you can buy a bottle
of wine for as little as £3, £5, or up to £15 depending on your budget. Take canned produce like beans; we’ve got
Happy Shopper in the ‘good’ range, Heinz in the ‘better’ range and Epicure in
the ‘best’, for people who want something different. So everyone can find something suitable.”
DSFH: “So what are your best sellers?”
PT: “We do sell an awful lot of pies! Locally made homemade pies just seem to fly
off the shelves. But the Deli section
generally does ever so well”
DSFH:
“You touched on it briefly but a village shop in a place like Orford can
almost be regarded as a social service as much as a business. Is that a double edged sword?”
PT: “Not at all. You are right, we are often the first to
notice if an elderly customer doesn’t pop in, and you get some people who just
come in for a chat, but that makes us a sort of communications hub. From a business perspective it’s a privileged
position. Customers do expect you to
remember their names though. Everyone
knows who I am, so it can be a real challenge remembering theirs!”
DSFH:
“You carry a lot of local produce. How important is that?”
PT: “Absolutely crucial! As a retailer I
want to know the provenance of the food I sell.
If a bag of potatoes were harvested from the field in Leiston yesterday
afternoon I can be pretty sure that they will be fresh and the customer will be
happy. But it’s more than that. I’ve now got over 20 suppliers within a
fifteen mile radius (and growing). 30%
of my shelf space is allocated to local products. Being local is part of the brand that differentiates
us from the supermarket chains. But
Suffolk is a great food-producing county with some wonderful local
products. As a retailer of course I want
to tap in to that.”
DSFH: “So did you find local suppliers were
ready and prepared to supply a local, small business?”
PT: “Most of them were very enthusiastic
but with some we have had to work together on things like packaging or branding.”
DSFH: “You actually run a portfolio of
businesses in the village don’t you? Is
that part of a strategy?”
PT: “Absolutely. There’s The General Store, The Suffolk
Butcher and Penny’s Café. They are all
distinct brands that will allow us to do different things with them. But it’s also about making Orford into a
‘destination food village’. After all,
we don’t get any passing trade out here.
But the other businesses in Orford: the smokehouses, the bakery, pubs,
hotel and the craft shop all contribute to make it somewhere people will
consciously come to. We get customers
now who regularly come from a wider catchment area to visit us."
Penny's Cafe - Helping to make Orford into a Destination Food Village |
DSFH: “But how much can you really expand
the market? Ultimately you are restricted by demographics aren’t you?”
PT: “A lot of people do come in to the
area: second homers, day trippers and so on. Trade in a place like Orford is
very seasonal, but the thing is to extend the season. We are working with the Orford Business Association
to do just that. I’ve held ‘tasting
events’ for wine and local products and we have a Carol singing planned for the
22nd of December. There’s a
lot more events planned for next year.”
DSFH:
“So the future of the village shop is bright is it?”
PT: “Well I am ahead of schedule according
to my business plan. Year one was all
about getting the basics sorted out, but this year will be about growth: more
tastings, expanding the range, building a website.”
DSFH:
“And is Orford a unique location or would your treatment work in other
village shops?”
PT:
“The model will work in other locations, if the timing and opportunities
come up. But that’s in the future,
Christmas is the immediate focus.”