When Shiva and Shanthi Kandaswamy decided to convert a former hardware store into a cutting-edge convenience store, they didn’t cut any corners, and they had the vision to build a true destination store – which won them two SLR Awards.
Building a brand new, modern convenience store is not for the faint hearted these days. With customer expectations so high, it’s generally a case of go hard or go home. And there’s absolutely no debate about which route Shiva and Shanthi Kandaswamy took when they decided to convert a tried old 3,500sq ft hardware store in Dunbar into a thoroughly modern Premier convenience store.
The conversion cost the best part of £300,000, a huge investment, but it’s not the sum of money spent that impresses most: it’s the thought behind how that money was spent. So what can we learn from this epic fit out that ultimately won Shiva and Shanthi not one but two SLR Awards this year, the Off Trade Retailer of the Year Award and the New Store of the Year Award?
1. Be a destination
Shiva is no stranger to retail as he already owns another convenience store and a specialist off-licence in the area. So he knows the importance of giving customers as many reasons as possible to pass competing stores and come to yours. Working with Premier, he tapped into their experience of working with around 5,000 stores to ensure that his new store was packed with products and services that customers wouldn’t easily find anywhere else in Dunbar. Hence elements like the Beer Cave, hot food, local bakery, the extensive vaping offer and the Refresh Zone with coffee, shakes, hotdogs and Coca-Cola Frozen. All of these elements also boast high margin and minimal work from staff.
But Shiva pushed the concept further by adding a Soft Drinks Cave, one of the first in Scotland. It adds theatre and range and again minimises manual handling for staff.
Plus he added a Scottish products section to appeal to the many tourists who visit Dunbar every year.
In other words, plenty of compelling reasons for customers to visit Premier Dunbar.
2. Go with what you know
One of the standout parts of the store is the fantastic wine and spirits section that greets customers as soon as they walk through the door. A former sommelier, Shiva has extensive experience of wine and spirits and saw a gap in the market for a unique and higher-end range of wines. Not for him the standard range of bog standard, big brand, uninspiring wines found in most convenience stores and supermarkets.
He enhanced that with some fantastic premium spirits, many of them local, and added a Havana cigar humidor for good measure. Unsurprisingly, the section has been a huge hit and he is seeing customers come from miles away. Plus, the rustic layout of the section adds some more theatre.
3. Go local
Locally and regionally sourced products add another layer and elevate the store’s offer to another level. From beers, spirits and ciders to biscuits, ice cream, meat and Indian ready-meals, there’s a local product for every occasion and that’s something that resonates with Shiva’s customers.
4. Do it right
Customers are very demanding these days and their standards are higher than ever. They expect stores to look and feel fantastic, so if you want to futureproof your store, cutting big corners is not an option. That’s something Shiva and Shanthi understood well, which explains the £300,000 investment. They also used Vertex for the fit-out, not the cheapest shopfitting option on the market, but a company renowned for the quality of its work. And it shows. Every aspect of the store is on point from the top-notch refrigeration to the bespoke shelving, counters and lighting. Premier Dunbar just feels special, and it does it without feeling too clinical. It retains the charm of a community store but is utterly modern, spacious and bright.
5. Margin matters
It’s all very well having a beautiful store that’s a joy to shop, but it has to make money – and that’s not something that was lost on Shiva. A very significant percentage of the store’s range is high value, high margin and good volume: premium wines and spirits, shakes, coffee, food to go, vaping, the list goes on.
Again, these lines tend to have high cash profits, not just percentage profits. You can’t take percentages to the bank, as the old adage goes.
6. Be welcoming
So, we’ve got an amazing store here that ticks every box – but what is arguably more noticeable than anything else in Premier Dunbar is the almost childlike enthusiasm of the team there when interacting with customers, and that includes Shiva himself. He interrupted our interview during the judging on at least a dozen occasions to talk at length to a customer, offer some advice or help, or simply check they the customer could find what they were looking for. The entire team has ear-to-ear smiles and an easy confidence in striking up conversations with everyone who walks through the door. It’s old-school local retailing and it makes all the difference.
Ultimately, what Shiva and Shanthi have done is turn a deep understanding of the market and the local customer base into a standout destination store that is unlike any other in Dunbar. None of it is rocket science but everything has been done really well. And that’s exactly why they have two SLR Awards sitting behind the counter less than a year after opening.
