A new report confirms it has been another strong year for the convenience sector after retailers made significant investments to provide a wider range of services.
The 2023 Local Shop Report from the Association of Convenience Stores (ACS) shows that there are now 49,388 convenience stores in mainland UK, with 70% run by independent retailers, either as part of a symbol group (31%) or unaffiliated (39%).
The channel generated over £47.1bn in sales during the last year, with this figure expected to grow to over £50.9bn by 2026.
ACS noted that convenience retailers have continued to make major investments in their stores to diversify the breadth of services that they offer. Findings from the report show that retailers invested £646m in their businesses over the last year, with the top areas of investment being refrigeration (56%), shelving (39%), store signage (33%), in-store lighting (32%) and technology (29%).
The study also highlights the positive contribution that convenience stores make to communities, providing jobs and engaging in local activities.
ACS Chief Executive James Lowman commented: “Local shops operate at the heart of the communities, constantly adapting and evolving to meet the changing needs of the local population. As well as food and drink, convenience stores provide services like bill payment facilities, parcel services and access to cash through hosting most of the UK’s Post Offices and through other partnerships. We fill in the gaps by providing services that have been lost as specialist operators close, where our communities cannot sustain lots of different standalone services, or where we see an opportunity to provide something new to our customers.
“No business sector is more in tune to the way our communities are changing, and no business sector operates in more communities than convenience stores.
“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 report also revealed a 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. ACS suggested that this could be linked to the changing profile of convenience store owners, who are becoming younger, including more women, and more likely to include first-time investors coming into the sector, as well as established family businesses.
Lowman said: “We are seeing a sector led by innovative business people drawn from every demographic and with their eyes firmly on the future.”
