Convenience retailers have significantly scaled back investments in their stores over the last year in response to the uncertainty caused by Brexit and the political wrangling in Westminster.
Figures from the Association of Convenience Stores’ Investment Tracker show that in the 12 months to November 2019, the UK’s 46,000 local shops have invested £558m in their businesses, down from £737m in the previous year – a year-on-year decline of 24%.
The most common form of investment across the sector was found to be refrigeration, with retailers looking to make their equipment more efficient as well as buying new fridges to expand their range of products, especially in areas like food-to-go.
Commenting on the findings, Association of Convenience Stores (ACS) Chief Executive James Lowman said: “Continuing uncertainty over Brexit and the General Election has led to some convenience retailers holding back on investment plans, which is why we’re seeing a year-on-year decrease in investment levels overall.
“However, local shops have still invested over half a billion pounds in the last year to improve their businesses, increase the range of services on offer and expand product ranges to keep up with consumer demand. Convenience stores remain huge contributors to both the local and national economy.”
Ahead of the General Election, ACS has urged all major parties to ensure that investment is incentivised through the business rates system as part of a package of wider reforms.
Lowman added: “The next Government must take swift action to address the imbalances in the business rates system. We must ensure that convenience retailers and other small businesses are given the right conditions to be able to invest, instead of being put off by the threat of hikes to their rates bills.”
