Report 2019 - ACS | The Association of Convenience Stores

The Local Shop Report 2019

A report by the Association of Convenience Stores #LocalShopReport

Contents

Introduction

02 CONTENTS AND INTRODUCTION 03 WHO WE ARE 04 WHERE WE TRADE 06 WHAT WE CONTRIBUTE TO THE ECONOMY 08 WHAT WE SELL 10 THE SERVICES AND TECHNOLOGY WE OFFER 12 OUR COLLEAGUES 14 HOW WE OPERATE 18 WHO WE SERVE 20 OUR COMMUNITIES 22 METHODOLOGY 23 ABOUT ACS 23 ACKNOWLEDGEMENTS

The Local Shop Report provides a comprehensive view of the UK convenience sector, looking at where stores trade, the colleagues we employ, our contribution to the economy and our essential contribution to local communities.

The information in this report is gathered from our own primary research, surveying 2,371 independent retailers in addition to multiple and co-operative businesses representing over 7,500 stores. The report also draws on data supplied by William Reed, IGD, Plunkett Foundation, Retail Data Partnership and HIM.

Some of the figures in the report have been scaled to reflect the entire convenience sector. Detailed information about the methodology and calculations in the report can be found on pages 22-23 and online at .uk/research

Who we are

Why we are important

46,388 ?40.3bn There

are

convenience stores in mainland UK

total sales

?8.8bn 71%

are run by independent retailers

in GVA

?633m invested

What we offer

405,000 jobs

Most positive impact on the local area

75%

Bill payment services

46%

Free to use cash machines

34%

Customer operated coffee

machine

2 .uk ? @ACS_Localshops

1. Post offices

2. Convenience stores

?W HO WE ARE

46,388 There

are

convenience stores in mainland UK

Shop ownership

Independent retailers

71%

40% Unaffiliated independents (including unaffiliated forecourts)

31% Symbol group independents (including franchises)

Source: WRBM 2019

Multiples

29%

7% Co-operatives

22% Other multiples (including multiple owned forecourts and multiples trading under symbol groups)

Entrepreneurs

The people who own and run stores are:

23% 17% 14%

27% 19%

30

or under

31 ? 40

Source: ACS/HIM 2019

41 ? 50

51 ? 60

60+

3

Unaffiliated independents Independent retailers operating under their own fascia.

Convenience multiples Retail businesses operating chains of 10 or more convenience stores under a centrally-owned fascia e.g. McColl's.

Symbol groups Independent retailers who trade under a common fascia e.g. Nisa. Multiple businesses can also trade under a symbol group e.g. A.F. Blakemore (SPAR).

Co-operatives Groups of stores that are owned by their members.

Forecourts Convenience stores located on petrol filling stations. Forecourts are included within each of the retailer types and can be unaffiliated, symbol group, multiple or co-operative businesses. For more information about the forecourt sector please see the ACS Forecourt Report.

35% Female

65% Male

White British

57%

Asian or Asian British 35%

Other

8%

SEPTEMBER 2019

?WHERE WE TRADE

46,388 There

are

convenience stores in mainland UK

Shop numbers

Scotland

4,973

One shop per 1,093 people

Wales has more shops per head than any other part of mainland UK

North East

2,033

One shop per 1,307 people

England total

38,484

One shop per 1,455 people

North West

5,063

One shop per 1,440 people

Yorks/Humber

3,959

One shop per 1,384 people

East Midlands

3,510

One shop per 1,369 people

Wales

2,931

One shop per 1,071 people

Eastern

3,929

One shop per 1,578 people

West Midlands

4,435

One shop per 1,331 people

London

5,780

One shop per 1,541 people

South West

4,083

One shop per 1,371 people

South East

5,692

One shop per 1,605 people

The copyright in this material is vested in William Reed Business Media Ltd and may not be reproduced or transmitted in any form or by any means, or stored in a retrieval system of any nature, without the prior written permission of the copyright holder.

4 .uk ? @ACS_Localshops

All data on this page ? source: WRBM 2019 and ONS 2018

Location

Rural

A `traditional' convenience store, often providing the only shopping option for the local community.

SHOP

Rural: 37%

Suburban

Providing a focal point for suburban communities and estates sometimes standalone or alongside a small number of other local services.

SHOP

HAIRDRESSER

Suburban: 26%

COFFEE SHOP

SHOP

FASHION

Urban: 37%

Urban

Operating as part of a mix of stores serving the

needs of those living in centres and the shopping

needs of workers and residents.

Neighbouring businesses

Source: WRBM 2019

38% Isolated store No other retail/service businesses close by.

LOCAL SHOP

42% Located on a small parade Up to five retail/service businesses close by.

LOCAL SHOP HAIRDRESSER BUTCHER

11% Located on a larger parade or a high street Up to 10 retail/service businesses close by.

PUB

BANK

COFFEE SHOP LOCAL SHOP

FASHION

PHARMACY RESTAURANT

10% Located on a main high street or within a city centre More than 10 retail/service businesses close by.

CHARITY

TAKEAWAY

PUB

BANK

COFFEE SHOP LOCAL SHOP

FASHION

PHARMACY RESTAURANT HAIRDRESSER

BETTING

SPORTS

5 Source: ACS/HIM 2019 (independents only)

SEPTEMBER 2019

?W HAT WE CONTRIBUTE TO THE ECONOMY

Economic contribution

Over the last year, the convenience sector contributed

Over ?8.8bn in GVA

and over ?7.7bn in taxes

?308m Business rates

?281m Corporation tax

?275m Employer National Insurance contributions

&HMCuRsetovemnsue VAT Return &HMCuRsetovemnsue Tax Return

?604m VAT

?334m PAYE

?5,940m Excise duties (exc. fuel)

Direct taxes

?0bn

?1bn

?2bn

Investment

Over the last year

convenience stores have

invested

Indirect taxes

?3bn

?4bn

?5bn

?6bn

?7bn

?8bn

Source: ACS 2019 / Retail Economics 2018

?633m in their businesses

Average annual investment by store type

Unaffiliated Symbols independents: ?10,716 ?7,181

Multiples: ?27,681

.uk ? @ACS_Localshops

6 Source: ACS Investment Tracker 2018/2019

Percentage of stores investing

24%

Unaffiliated independents

26% Symbols

43% Multiples

Areas of investment (of those investing)

Refrigeration 36%

Internal building maintenance 32%

Shelving 21%

In-store lighting 16%

Crime prevention measures 12%

Till systems (e.g. EPOS) 11%

Freezer space 10%

Store signage 10%

NEW Store Opening Soon!

Full store refits 7%

Internal building development 7%

Sources of investment

Air conditioning 7%

Improving store access 4%

Parking provision 3%

79%

8% 5% 5% 3%

Funded from own reserves

All data on this page ? source: ACS Investment Tracker 2018/19 (Sources of investment refers to independents only)

Funded/provided by symbol group Financial institutions

Funded/provided by suppliers Other business/wholesale funding

7

SEPTEMBER 2019

?WHAT WE SELL

Total value of sales

?40.3bn=

(in the convenience sector in the year to March 2019)

over one fifth of the total grocery market

Source: IGD 2019

20% to 28% A store's product

margin typically ranges from:

Convenience market share

Source: ACS/HIM 2019

Store type

Symbols

Market share of sales

37.6%

Multiples

24.0%

Unaffiliated Independents

16.6%

Co-operatives

11.6%

Forecourts*

10.2%

*Excludes forecourt stores operated as symbol, multiple grocer or co-operative fascias. Forecourt sales excludes fuel 8

.uk ? @ACS_Localshops

Source: IGD 2019

Category sales: Overall market

3.2%

Savoury snacks

3.0%

Non-food

Hot food & drinks

3.0% Sandwiches & Wraps

1.5%

2.1%

4.2%

Frozen foods

Fruit & vegetables

Health & beauty

1.3% 1.5%

Household

15.1%

Alcohol

7.1%

Soft drinks

4.5%

3.4%

Fresh milk

Bread & bakery

3.3%

News & magazines

5.9%

Confectionery

20.9%

Tobacco and E-cigarettes

12.8%

Chilled foods

7.2%

Canned & packaged

grocery

Source: IGD 2019 ? data refers to overall convenience market

Category sales: Independents only

Fruit & vegetables

Non-food

Health & beauty

Hot food & drinks

Sandwiches & wraps

20.0%

Alcohol

1.2%

1.2%

2.3%

Fresh milk

3.0%

Household

34.0%

Tobacco and E-cigarettes

1.0%

4.0%

0.3% 1.8% Frozen foods 0.6%

Chilled foods

3.7%

Canned & packaged grocery

4.3%

News & magazines

2.8%

Savoury snacks

6.4%

Confectionery

3.4%

Bread & bakery

9.9%

Soft drinks

Source: The Retail Data Partnership 2019 ? data refers to independent retailers only

The percentage of stores in the convenience sector that sell each of the following products is:

Alcohol licence

81%

Source: ACS/HIM 2018

44% Wood/

domestic burning fuel

Source: ACS/Retail Data Partnership 2019 9

31% Plants or

horticulture products

Source: ACS/Retail Data Partnership 2019

SEPTEMBER 2019

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