Local Shops More Relevant Than Ever

The ACS’s 2016 Local Shop Report highlights the essential role U.K. convenience stores play in the modern retail landscape.

September 08, 2016

LONDON – The newly released Local Shops Report by the Association of Convenience Stores (ACS) demonstrates the value that convenience stores provide their communities, both in terms of investment and by making a positive difference to their local area.

Key findings from the report include:

  • There are 50,095 convenience stores in mainland U.K., making up a sector that is worth £37.5 billion, a growth of more than £400 million on 2015.
  • Local shops are a vital source of employment. Across the U.K., the convenience store sector provides jobs for 390,000 people, but the number of staff employed in each store has fallen, and more staff are working part-time hours.
  • Convenience stores have invested more than £600 million in their businesses over the last year on improving their stores.

The report reveals that part of the reason for the success of convenience stores is their ability to adapt. More than one in four stores (28%) now provide parcel services, with 10% offering a click-and-collect service and some even introducing services like dry cleaning and key cutting inside the store, showing that thousands of stores are embracing the challenge of attracting consumers who primarily shop online.

ACS Chief Executive James Lowman said: “The Local Shop Report shows that people of all ages, demographics and interests shop in convenience stores. Retailers have done a fantastic job of diversifying their offering in store and providing a wide range of services, which contributes to the fact that consumers, local councilors and MPs all believe that post offices and convenience stores are the services that have the most positive impact on their local area.

“The number of jobs that our sector provides stands out once again this year. Convenience stores now employ [more than] 390,000 people, providing local flexible jobs to people who are juggling other commitments like child care and studying. For the first time since we started this research in 2012, we have seen a decline in job numbers as well as more staff working part-time hours. This is consistent with the feedback from other ACS surveys showing retailers cutting back on staff hours to cope with the big increases in wage costs, not least because of the National Living Wage.”

The report has also revealed that convenience store owners are some of the hardest working entrepreneurs in the U.K., with 24% of retailers working more than 70 hours per week and 22% taking no holiday at all throughout the year.

Lowman continued: “Running a successful convenience store requires a lot of hard work and a strong connection to the local community to ensure that the store stays relevant. We need help from [the] government to reduce the cost of doing business to help these increasingly important shops [that are] open and thriving in communities up and down the country.”

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