LOCAL SHOP REPORT 2020

CONVENIENCE OVERVIEW: ASSOCIATION OF CONVENIENCE STORES

THE AVERAGE SHOP IN A FAR FROM AVERAGE YEAR

THE ACS HAS PUBLISHED ITS ANNUAL LOCAL SHOP REPORT FOR 2020. SO, IN A YEAR DOMINATED BY AGLOBAL PANDEMIC, HOW DOES YOUR STORE STACK UP AGAINST THE AVERAGE?

It’s fair to say that 2020 has been a year like no other, and this is reflected in the Association of Convenience Store’s latest Local Shop Report.

The report, which provides an annual snapshot of the UK’s convenience retailing industry, includes a whole section devoted to the sector’s response to Covid-19.

Although convenience has been touted as the one industry that landed on its feet in the wake of the pandemic, the report paints a mixed picture for retailers. While most (38%) reported a large increase in sales, spare a thought for the 34% whose sales went down. Similarly, almost half of stores (48%) saw basket spent increase greatly, 17% said sales took a considerable hit.

One thing that is certain about the pandemic, however, is its role in driving a surge in home deliveries: local shops now make over 600,000 of these every week.

THE BIG PICTURE

The ACS puts the number of convenience stores in mainland UK at 46,955, of which almost three-quarters (72%) are run by independent retailers. Of these indies, over half (56%) are unaffiliated, with the remainder part of a symbol group.

Between them these stores generate a massive £44.7bn in total sales, add £10.1bn in GVA to the economy and employ 412,000 people, two-thirds of them female.

Wales has more stores per head of population than any other part of GB, with one shop for every 1,058 people. Scotland isn’t far behind with one per 1,082 people. Store locations are fairly evenly split three ways between rural (37%), urban (37%) and suburban (26%) areas.

The average customer visits their local store 3.7 times per week, spending £7.46 on a basket containing 2.5 items.

Tobacco (and vaping) and alcohol continue to generate the bulk of sales for independents at 32.7% and 20.1% respectively. At the other end of the scale, sandwiches garnered 0.6% and hot food-to-go brought in 0.3%.

INVESTMENT

Unaffiliated independents spent an average of £8,022 on their stores over the last year. Stores trading under a fascia invested half as much again (£12,178). Unsurprisingly, it was stores owned by multiple chains that saw the most investment – an average of £19,339.

The report also reveals the benefit of joining a symbol group. Just under a third (32%) of stores trade under a fascia. These rake in a 35.3% share of sales. This sits in stark contrast to the 40% of unaffiliated stores, which only have a 17.7% share. As for the rest, multiples have a 23.8% share, co-ops 12.4% and forecourts 10.9%.

The convenience industry isn’t just about making money though. Local shops are often said to be the backbone of the areas they serve, so it’s no surprise that 80% of independent retailers took part in some form of community activity in the past year, with 71% raising money for charity.

The Local Shop Report can be viewed in its entirety on the ACS website.