Yesterday 10th September, I joined a livestream presentation by the Association of Convenience Stores (ACS) who were launching their latest 'state of the nation' all things UK convenience channel. Swithering whether to take the time out to sit through this or skip and tackle my growing 'To Do List', I opted for the former and I'm so glad I did! A brilliant hour spent listening to the team talking through their in-depth research and an industry panel discussing the findings of the work and how it relates to them.
So many takeaways to summarise but here's my top ten picks:
There are 50,387 convenience stores in the UK of which 71% are run by independent retailers - both unaffiliated independents and those independents who operate under a symbol group or franchise. That's up by nearly 1,000 stores compared to 2023.
1 in 3 convenience stores are the only store in their local neighbourhood with another 40% on a small parade of 5 or fewer shops. On average a store will service 4,428 people within 500 metres of their door.
Convenience store owners are investing a lot! They spent £1 billion last year improving and refurbishing with over half of this spend being made on refrigeration.
Drinks sales (alcohol and soft drinks combined) account for a quarter of total spend through the total convenience store market. Within the independent stores, this is over 31% of total spend.
92% of independent retailers have an alcohol license and 78% sell no & low drinks.
Almost 9 in every 10 independent retailers operate only one store in the UK.
Shoppers visit their local convenience store on average nearly 3 times a week. They buy an average of 2.8 items and they spend £8.04 each visit.
Over half of retailers who own and run stores are aged 40 and under and they are increasingly online. Over half have a store website, they are investing in digital including advertising screens and digital shelf edge labels. They use social media (Facebook followed by Instagram) and nearly half offer home delivery/click & collect services.
49% of convenience store owners have been in business for less than 6 years.
58% of store owners claim to get the majority of products delivered by a wholesaler with only 15% stating that they get the majority of their products from a cash & carry. The remaining 28% use both to source and buy products.
So what can we take from this information?
The independent convenience channel is innovative, growing and owners are actively investing in their stores to grab share of retail spend and make their stores more of a destination experience.
Convenience stores are key to their local neighbourhood and are in the majority of cases the only retail offering in the area so the shoppers who buy little and often default to their local store. We know shoppers are demanding more from the retail offering and stores are responding.
Independent retail store owners are the decision makers and with a population of over 50,000 stores, that's a huge, disparate group to influence.
Optimising the range and return from the drinks category is key for retailers with this being the biggest spend category in store and with significant investment in refrigeration across the board, chilled drinks are key.
Delivered wholesale and cash & carry is the principle route for retailers to source and purchase products but they are connecting on social platforms with brands.
Statistics are often overwhelming and so top level it's hard to take action. This report from the ACS however, is neither of those things. Whether you are a brand owner, distributor, wholesaler, or cash & carry owner, these are precious, valuable nuggets that paint a really clear picture of the market.
Now I'm not affiliated with the ACS in any way but I have to be honest, I immediately contacted them to find out how I could get involved. Take a look - great resources, information, and most importantly a loud and clear voice for the industry and by default a lifeline for local neighbourhoods who rely heavily on their local convenience store.
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