The latest Local Shop Report from the Association of Convenience Stores (ACS) highlights the potential impact that a no-deal Brexit could have on the sector.
The study reveals that 23% of independent convenience retailers do not have any additional space in their store to stockpile products, while 45% rely on deliveries from wholesalers for their products, and 34% get all of their products from a cash & carry.
ACS Chief Executive James Lowman said: “The vast majority of stores in the convenience sector do not have direct control over their supply chain, so will be significantly affected in the event of disruption as a result of no-deal. This is particularly problematic for the 23% of independent retailers that have no additional space in their stores to stockpile products.
“Convenience stores have a unique reach into every community, so it’s absolutely essential that the regular delivery and supply of products to our sector is maintained in the event of disruption as a result of no-deal, especially for isolated communities where their local shop is the only place for people to get everyday groceries for miles around.”
The report also reveals that there are 46,388 stores in the convenience sector, generating sales of £40.3bn over the past year. Convenience stores owners spent more than £633m improving and expanding their businesses during the period despite the tough trading conditions.
IGD Live will look at the implications and opportunities of consolidation in the convenience sector for suppliers and consider where growth will come from in 2020.
