Food and Beverage Business
Consumer

Retailers allocate £646m in investments to enhance community services

Retailers allocate £646m in investments to enhance community services 646m, allocate, communities, community, enhance, expand services, investing, investments, retailers, services Food and Beverage Business

The report presents an in-depth analysis of the convenience sector’s performance in the past year. It examines various aspects, including the workforce, investment decisions by retailers, offered products and services, and the impact of local shops on their communities.

According to the report, convenience retailers have made significant investments in their stores to expand their range of services. Over the last year, these businesses have collectively invested £646m, with the major areas of investment being refrigeration (56%), shelving (39%), store signage (33%), in-store lighting (32%), and technology (29%).

Convenience stores play a crucial role in providing secure and flexible employment opportunities, employing over 437,000 people. As staffing challenges ease, retailers are increasing their workforce and offering more hours to employees. In the last year, colleagues in this sector worked a combined total of 12.1 million hours per week.

Key figures from this year’s report include:

– The convenience sector has generated sales worth over £47.1bn in the past year, and this figure is projected to exceed £50.9bn by 2026.
– Approximately 70% of convenience stores are independently operated, either as part of a symbol group (31%) or without any affiliation (39%).
– 79% of independent retailers have engaged in community activities in the last year.
– A quarter of customers reside within a half-mile radius of their local convenience store, and 57% of customers reach the store on foot.
– 36% of customers are acquainted with the people working at their local shop to a great extent.

James Lowman, the chief executive of the Association of Convenience Stores, emphasized the vital role that local shops play in their communities. He acknowledged their constant adaptation to meet changing needs and described their contribution to the wider economy and the well-being of employees and customers.

In addition to offering food and beverages, convenience stores provide essential services, such as bill payment facilities, parcel services, and access to cash through Post Offices and other partnerships. These stores fill the gaps left by the closure of specialist operators, ensuring that communities have access to necessary services and introducing new offerings when feasible.

Convenience retailers have made substantial investments and devoted countless hours to making a positive difference in their communities. Despite challenges posed by the energy and cost of living crisis, this year’s report serves as a reminder of the significant contributions made by these businesses.

The 2023 Local Shop Report highlights the growing use of social media by retailers to promote their businesses. With an increasing number of products and stores gaining popularity online, retailers are utilizing platforms like Facebook, Twitter, and TikTok to engage with customers.

This shift can be attributed to the evolving profile of convenience store owners, who are now younger, include more women, and consist of both first-time investors and established family businesses. This level of diversity and forward-thinking is driving innovation within the sector.

Furthermore, the Local Shop Report cover image for this year draws inspiration from Dean Holborn’s store in Redhill, winner of the prestigious 2022 Raj Aggarwal Trophy. The 2023 Trophy will be presented at the upcoming Heart of the Community Conference in London on October 17.

The Local Shop Report provides valuable insights into the convenience sector, showcasing its remarkable growth, investment efforts, community engagement, and adaptation to meet the changing demands of consumers. Despite the challenges faced, convenience retailers continue to be a pillar of their communities, making a significant impact on both the economy and the lives of those who work in and visit these stores.

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