Convenience retailers are continuing to make significant investments into their stores to diversify the breadth of services that they offer, according to The 2023 Local Shop Report.
The findings from this year’s report show that convenience retailers have invested £646m in their businesses over the past year and of those investing the top areas of investment are: refrigeration (56%), shelving (39%), store signage (33%), in-store lighting (32%), and technology (29%).
The report shows convenience stores employ more than 437,000 people and as staff shortages ease retailers are employing more people for more hours. Over the past year workers in the sector worked a combined 12.1 million hours a week.
Other key figures from this year’s report include:
- The convenience sector generated over £47.1bn in sales over the past year, with that figure set to grow to over £50.9bn by 2026.
- 70% of stores in the convenience sector are run by independent retailers, either as part of a symbol group (31%) or unaffiliated (39%).
- 79% of independent retailers engaged in some form of the community activity over the past year.
- A quarter of customers come from half a mile or less and over half of customers (57%) walk to store.
- 36% of customers know the people running and working in their local shop very well or quite well.
Association of Convenience Stores Chief Executive James Lowman said: “Convenience retailers have invested hundreds of millions of pounds and countless hours to make a positive difference in their communities, despite the challenges that they have faced in light of the energy and cost-of-living crisis. This year’s report serves as a reminder as to the significant contribution that these businesses make to not only the wider economy but the people working in and visiting these stores.”
The 2023 Local Shop Report has also revealed significant growth in the number of retailers that are using social media for their businesses. With more products and stores going viral over the last year, there has been a clear shift towards activity on platforms like Facebook, X (Twitter) and Tiktok to engage with customers. This could be linked to the changing profile of convenience store owners, which is becoming younger, including more women, and more likely to include first-time investors coming into the sector, as well as established family businesses.
Lowman added: “We are seeing a sector led by innovative businesspeople drawn from every demographic and with their eyes firmly on the future.”
