Report 2020 - ACS

The Local Shop Report 2020

A report by the Association of Convenience Stores #LocalShopReport

Contents

Introduction

02 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 17 COVID-19 RESPONSE 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 the essential role we play in local communities. The information in this report is gathered from our own primary research, surveying 2,431 independent retailers in addition to multiple and cooperative businesses representing over 6,700 stores. The report also draws on data supplied by William Reed, IGD, Plunkett Foundation, The Retail Data Partnership and Lumina Intelligence.

While this report is intended to look at the normal conditions of a store in 2020/21, some of the figures have been influenced by Covid-19. We address the response of convenience stores to lockdown on page 17 of this report. 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

46,955 ?44.7bn There

are

convenience stores in mainland UK

total sales

are run by

?10.1bn in GVA

independent retailers

?585m invested

What we offer

412,000 jobs

Most positive impact on the local area

76%

Bill payment services

49%

Free to use cash machines

.uk ? @ACS_Localshops

17%

Local grocery delivery

2

1. Convenience stores

2. Post offices

?W HO WE ARE

46,955 There

are

convenience stores in mainland UK

Shop ownership

Independent retailers

40% Unaffiliated independents (including unaffiliated forecourts)

32% Symbol group independents (including franchises)

Source: WRBM 2020

Multiples

28%

7% Co-operatives

21% Other multiples (including multiple owned forecourts and multiples trading under symbol groups)

Entrepreneurs

The people who own and run stores are:

26%

21% 14%

24% 15%

30

or under

31 ? 40

Source: ACS/Lumina 2020

41 ? 50

51 ? 60

60+

3

Unaffiliated independents Independent retailers operating under their own fascia.

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.

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

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.

33% Female

67% Male

White British

48%

Asian or Asian British 44%

Other

8%

SEPTEMBER 2020

?WHERE WE TRADE

46,955 There

are

convenience stores in mainland UK

Shop numbers

Scotland

5,025

One shop per 1,082 people

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

North East

2,060

One shop per 1,290 people

England total

38,963

One shop per 1,437 people

North West

5,131

One shop per 1,421 people

Yorks/Humber

4,007

One shop per 1,368 people

East Midlands

3,551

One shop per 1,353 people

Wales

2,967

One shop per 1,058 people

Eastern

3,981

One shop per 1,558 people

West Midlands

4,487

One shop per 1,315 people

London

5,845

One shop per 1,524 people

South West

4,133

One shop per 1,355 people

South East

5,768

One shop per 1,583 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 2020 and ONS 2019

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 2020

37% Isolated store No other retail/service businesses close by.

LOCAL SHOP

39% Located on a small parade Up to five retail/service businesses close by.

LOCAL SHOP HAIRDRESSER BUTCHER

9% 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

15% 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/Lumina 2020 (independents only)

SEPTEMBER 2020

?W HAT WE CONTRIBUTE TO THE ECONOMY

Economic contribution

Over the last year, the convenience sector contributed

Over ?10.1bn in GVA

and over ?8.9bn in taxes

?274m Business rates

?304m Corporation tax

?286m Employer National Insurance contributions

&HMCuRsetovemnsue VAT Return &HMCuRsetovemnsue Tax Return

?669m VAT

?343m PAYE

?6,585m 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

?9bn

Source: ACS 2020/Retail Economics 2019

?585m in their businesses

Average annual investment by store type

Unaffiliated Symbols independents: ?12,178 ?8,022

Multiples: ?19,339

.uk ? @ACS_Localshops

6 Source: ACS Investment Tracker 2019/2020

Proportion of stores investing

27%

Unaffiliated independents

30% Symbols

36% Multiples

Areas of investment (of those investing)

Refrigeration 42%

Internal building maintenance 35%

In-store lighting 30%

Shelving 23%

Store signage 15%

Air conditioning 12%

Crime prevention measures 12%

Till systems (e.g. EPOS) 10%

Freezer space 8%

NEW Store Opening Soon!

Full store refits 5%

Sources of investment

Internal building development 5%

Parking provision 5%

Improving store access 4%

67%

16%

7% 5% 5%

Funded from own reserves

All data on this page ? source: ACS Investment Tracker 2019/20 (Sources of investment refers to independents only)

Funded/provided by suppliers Funded/provided by symbol group Other business/wholesale funding Financial institutions

7

SEPTEMBER 2020

?WHAT WE SELL

Total value of sales

?44.7bn=

(in the convenience sector in the year to March 2020)

over one fifth of the total grocery market

21% A store's product

margin typically ranges from:

Convenience market share

to

31%

Source: ACS/Lumina 2020

Store type

Symbols

Market share of sales

35.3%

Multiples

23.8%

Unaffiliated Independents

17.7%

Co-operatives

12.4%

Forecourts*

10.9%

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

.uk ? @ACS_Localshops

Source: IGD 2020

Category sales: Independents only (2020)

Pet food and pet care products

1.1%

Fruit & vegetables

Non-food Health & Sandwiches beauty & wraps

Hot foodto-go

0.3%

20.1%

Alcohol

32.7%

Tobacco and E-cigarettes

1.2%

1.2%

1.8%

Frozen foods

1.1% 0.6%

2.9%

Savoury snacks

4.1%

News & magazines

6.6%

Confectionery

2.0%

Household

4.0%

Chilled foods

3.9%

Canned & packaged grocery

3.6%

Bread & bakery

10.0%

Soft drinks

2.6%

Fresh milk

Source: The Retail Data Partnership 2020 ? data refers to independent retailers only

Category sales: Overall market (2019)

3.2%

Savoury snacks

3.0%

Non-food

Hot food & drinks

1.5%

3.0% Sandwiches & Wraps

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

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

Alcohol licence

78%

25% Wood/

domestic burning fuel

33% Plants or

horticulture products

9 Source: ACS/Lumina 2020

SEPTEMBER 2020

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