Bestway Wholesale managing director Dawood Pervez is the new Chairman of the Federation of Wholesale Distributors (FWD), taking over the post from Coral Rose of Fairway Foodservice in January.
He has become the 61st person to head the trade association in its 104-year history.
A Council member since 2018, Pervez has always been a keen supporter of the work FWD does to represent the interests of its 600 wholesale members to Government, suppliers and beyond.
Dawood Pervez tells Wholesale Manager how he wants more people to understand the enormous contribution the wholesale sector makes to society.
Congratulations on being appointed Chairman of the Federation of Wholesale Distributors.
What are your goals for what you want to achieve in the role?
I have always been a keen supporter of the work FWD does to represent the interests of its 600 wholesale members to government, suppliers and beyond. During my two-year term I would like to see the social and economic contribution of the wholesale sector broadcast to an even wider audience.
I will be looking to encourage FWD members to participate in work in three key areas: Planet, Talent and Trade, covering sustainability, recruitment and development, and helping suppliers to understand the opportunity the wholesale channel offers for their brands.
Bestway was named top Retail Wholesaler at the FWD Gold Medal Awards.
Why do you think the group won the award?
The last 12 months has been incredibly exciting for us as a Retail Wholesaler, and we are proud to have delivered extraordinary, exceptional, and relevant service to our retail customers during this time and winning Retail Wholesaler at the FWD Gold Medal Awards is the icing on the cake!
We’ve faced some key challenges including availability, inflation (costs), and labour shortages. Throughout the last year there has been immense supply chain disruption which continues to this day but throughout we have maintained a service level above 93% and KVIs of more than 96% against in-bound supplier service 80%. This was no mean feat and was achieved through the diligence and sheer determination of our team.
We have a partner approach to our suppliers on the basis that ‘together we are stronger’. One team with one agenda and shared goals.
We have taken a ground-breaking approach to promotions in depot to help retailers make more possible. Last year we invested £0.5m installing digital screens across depots, enabling change messaging, category advice, reacting with agility in a fast changing trading environment.
We changed how we mobilise promotions in depot, differentiating and setting new standards around the relevance of themes, bringing ‘theatre’ into depot e.g. Christmas House at Home Promotion / HRH Queen Jubilee.
We added additional resources into the training/depot implementation of Merchandising Standards Guide. A ‘Buddy’ system was introduced, ensuring support for new joiners and the appointment of ‘super-users’ for high skill sets in display and merchandising to support teams.
We launched six-weekly ‘store walks’ with participating store owners. Improving standards, highlighting opportunities, including ranging, layouts, development, services, with check lists identifying improvement categories. A ‘pull’ not ‘push’ approach with an average sales uptick north of 20%.
For corporate stores, 2021 saw the launch of our ‘T100’ – an online smart tool that manages compliance, shares KPIs and improves efficiencies. Stores set the store standards and compliance guide, giving an end report e.g. uploading photos of displays and product recalls taken off shelves. Outcomes of this include stores return better standards and consistency as well as improved sales and increased compliance of 31%.
At Bestway we are always investing in, and improving the technology we use, right across the breadth of the business. We are the market leader in digital developments including the first in the industry to introduce our bespoke apps for Bestway Wholesale, BB Foodservice and Best-Pets and we continue to invest and drive digital developments. We talk more about our investment on IT later in the interview.
How is Bestway performing overall? Is the group in growth? What is driving the growth?
In the last 12 months we have seen healthy double digit customer footfall increase across depots and online. Inflation has been a key driver, but we are pleased to say that overall non-tobacco volume is up. We’ve focused on investing in digital platforms, rationalising range, personalising and driving regional activity to offer sharper service to retailers, equipping them with the right tools to serve shoppers. The results are 11% average order uplift versus previous 12 months (5% in real terms).
Our business has adapted with agility to changing customer behaviours over the past year responding fast to changes in Government regulations/ policy. Our heightened focus on stock availability ensured we remained our customers’ partner of choice.
Driving our growth are many factors including:
Investing in our innovative hybrid stores – dual branded fascia stores within a store where convenience stores have potential to take their licence sales to next level by having BB’s store within – are being unrolled across the UK. Sales are +55%pw higher than comparable stores without BB stores.
Our investment in technology and data that is supporting personalisation which has been key to making more possible for our retailers. 2021 saw us give expert advice on the right range for each store (based on bespoke demographics), to grow margin, footfall, and profitability.
Our CACI tool is a proven winner for all stores and depots providing personalised insights to demographics of store location (forming part of Store Development Package). For depots we identify the potential of local market within the catchment, allowing teams to be more targeted in growing their business plans. Results: Typically, triggering 20%+ uplift in sales.
We are the home of the entrepreneurial retailer – we have the flexibility of decision making and we are able to adjust fast and with agility to market conditions.
Bestway has extended the duration of its fuel levy refund scheme for Costcutter retailers. Does this mean Costcutter retailers are struggling?
The cost of living and associated inflationary pressures are impacting on all retailers and consumers and Costcutter retailers are not immune to these economic influences. We’ve extended our fuel levy refund scheme into the New Year in order to give our retail partners every support possible during the ongoing economic turbulence.
If retailers meet their agreed spend of £7500 per week with Bestway, then they have their fuel levy refunded – it’s part of our promise to them to help them where we possibly can.
We are pleased to maintain this refund and have done so to help our retailers as we know that every penny counts right now.
How are Bestway’s symbol groups performing?
• Strong sales growth in non-tobacco at over 10% YOY across the whole of symbol.
• Performance: 15% in Costcutter, +28% in BestOne and +29% in National accounts – driven by growth in average weekly sales (AWS)
• Own label sales growth at over 18% YOY, enabling our retailers to give their customers brilliant value.
We support retailers by paying the NISA fuel levy if they spend over £7500 a week in Costcutter. We have introduced an enhanced rebate for B1 customers over the last month enabling all our customers to benefit from our fantastic rebate scheme. Both have been designed to support our retailers in helping them mitigate the inflated costs of running their businesses.
New business is performing well – we have opened 127 new shops since 1st July. Bargain Booze in a Costcutter, we have opened and refitted 3 shops so far. Combined growth is over 40% YOY, three more shops are being refitted and opening in January 2023 and an additional eight retailers have signed contracts for this format development in early 2023.
How will wholesalers cope with and respond to the cost-of-living crisis?
We will see an emergence of competition in the market with wholesalers making sure they provide the best price and value to their customers. This will affect the collaboration of the wholesaler and their suppliers in getting the best value product price for the retailers and their customers.
At Bestway we will continue to work collaboratively with our suppliers looking for opportunities to thrive as a business and continue to support our retailers in their profit margins in stocking the right value products.
The cost-of-living crisis will affect the footfall as retailers will feel the strain in maintaining their profit margins when their customers are searching for better value of products. This in effect will lead to retailers searching for cheaper prices in discounters.
How are Bestway’s own label ranges performing?
Here at Bestway our own labels ranges are performing strongly – we have seen an increase of 9% YOY in volume on own label products and specifically on core cupboard essentials. Our own label products that are popular are flour, oils, and canned meat and fish as well as dog food and cat food.
Our retailers will be accommodating the needs of customers shopping for own label products in the wake of the costs of living crisis where we are seeing continued increase in demand for our own label products. Retailers would typically get a guaranteed 30% more on margins from best-one own label products.
The Bestway category advice tool on our own-label range supports retailers on the popular staples, together with our specific own label brochure which showcases this value range.
How has the wholesale industry changed in recent years?
The last two or three years for wholesalers has clearly been a mixed bag! It’s been a roller coaster of change as we all work closely with our customers and their consumers and, of course, our suppliers to meet changing needs through Covid. It’s been especially difficult for some wholesalers who are focused into Foodservice, although there are winners and losers, and Covid amplified the challenges already facing the sector with legislation, living wage, Brexit and associated cost implications.
With this level of disruption across the industry – every wholesaler has needed to look hard at its business. The accelerating adoption of digital strategies, online shopping, and following where the data is leads to rewarding and understanding the customer better and helps retailers in a myriad of ways whether that is ensuring they get fair share of stock and supplies, or providing value added through rewarding loyalty or giving access to home shopping apps and new service provision.
How digital is Bestway as a business, and do you offer any IT support for your members e.g. ordering apps, online support, delivery tracking?
Here at Bestway we are firm believers that technology is the future. We also know that one size does not fit all. During the 2021/2022 period we achieved the following:
• We have launched the T100 online smart tool that shares KPIs with retailers and manages compliance whilst improving efficiencies improving compliance by 31%.
• Development and launch of ActivCPOS – the brand new epos system developed specially for Costcutter, using latest technologies, and giving improved functionality with live KPI dashboard displaying sales data by week, month and year (including forward projection data), plus instant and automatic ordering functionality of stock and instant promotional set up.
• Development/launch of reporting insight with Moneymaker, giving personalised retailer insight generation using retail and wholesale. This clever app shows purchasing data whilst highlighting missed selling opportunities and best sellers based on personalised demographics with margin opportunities and gap analysis. 12% sales uplift using the data and insights.
• Launch of cross brand rebate reporting systems, generating rebates on purchases from multiple locations. Reports show total retailer spend across Bestway.
• Investment and launch of next-gen self-checkout units. These small footprint self-checkouts from Toshiba are amazing and help improve customer flow, take both cash and card solutions and deliver an improved customer experience.
• Development partnership with HTEC (which own the business that makes our trading platform) and replacement of all our tills in company stores giving better margin control and visibility. Singular and seamless live file maintenance from wholesale system through to retail epos.
Bestway Group donated over 20 tonnes of vital medicines to victims of the recent flooding and resulting humanitarian disaster in Pakistan. Is this a cause close to your heart? Why did you choose this cause?
Yes, it is a cause close to our hearts as our family roots are firmly embedded in Pakistan – my father, Sir Anwar Pervez, the Founder and Chairman of the Bestway Group, was himself born in Pakistan.
Bestway Group continues the efforts of its Pakistan Flood Relief Appeal, for which it has raised over $2.5 million. Through its charitable arm, Bestway Foundation, it is overseeing the distribution of ration bags, blankets, mosquito nets and water filtration units to over 20,000 families in the worst affected areas of southern Pakistan provinces of Baluchistan and Sindh.
The Bestway Foundation has donated more than $46million to notable causes since its formation in 1987. It operates in the UK and in Pakistan and is focused predominantly in the areas of education and healthcare as having the great impact on social mobility and advancement.
Every $1 we have raised will go towards this cause and our teams on the ground are supporting families with housing, clothing and food and water. It’s not just about the short-term relief – we are also looking at how we can help in the longer term as Pakistan looks to rebuild its infrastructure and livelihoods which have all been destroyed.
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