Future of Retail

Young adults want better digital connectivity at c-stores

Research shows more than half of respondents think their local store has no digital technology.

New research shows that 50% of under 34-year-olds would like to see digital improvements at their local convenience store, but only 31% said they’d prefer to see lower prices.

The survey, carried out on behalf of Vodafone and Allwyn as part of their Future of Retail report, found local

retailers need urgently to update their tech if they are going to continue to attract younger shoppers. The poll of 2,000 people also found that 51% of respondents said they thought their local store had no digital technology.

Respondents said the most common forms of digital tech being used by

convenience stores were websites (19%), social media (16%), and self-service checkouts (15%). However, only 12% of customers said their local store had a mobile app or loyalty scheme and only 9% said they were aware of online collection ordering services.

However, the research does identify a small group of ‘digital innovators’ whose businesses are benefitting from the use of digital technology, including Mosi Patel, the owner of two independent convenience stores in Greater Manchester.

Mosi has invested in the development of his own app which offers delivery services and allows him to promote targeted offers to customers based on their shopping history. He also uses social media to connect with customers to ensure he is always able to deliver the best service. Following online feedback from his customers about food cooling down during delivery, he had bespoke heated plates fitted into his four fully-electric delivery vehicles.

Only 12% of customers said their local store had a mobile app or loyalty scheme and only 9% said they were aware of online collection ordering services.

Mosi, of Premier Heyside, said: “We have invested in developing our own local delivery app. It was a significant step for us, based on the feedback that delivery was very popular with our local community. We may not have 100 drivers, but you get a better service.

“We will always know our communities better than the big brands, and we must not leave the use of customer-facing tech to them. I’d encourage everyone to seriously consider upgrading. It is important to make sure your shop is only one click away.”

Nick Gliddon, Business Director at Vodafone, commented: “The shift to digital during the pandemic created new opportunities for small businesses while also presenting many new challenges, especially for the convenience and local sector. A strong foundation of digital technology and skills is now more than a nice to-have, it is crucial for small business owners who want to compete and succeed now. We want to ensure small business leaders have access to the right tools and guidance to confidently navigate the digital environment.”

Allwyn Advisory Board member and former Sainsbury’s CEO Justin King, added: “Covid has accelerated a shift in consumer habits towards the relative convenience of smaller local shops. However, those that are thriving are also embracing the opportunity of digital, be that through online apps and deliveries, or in-store innovations. The upside is significant – but fail to innovate and invest and you will struggle against increasing competition from dark stores, super fast delivery and ever more locally orientated big chains. Small shops must embrace their natural advantage in being nimble and dynamic.”