The Local Shop Report 2021

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The Local Shop Report 2021
The Local Shop Report 2021
A report by the Association of Convenience Stores
#LocalShopReport
The Local Shop Report 2021
Who we are
   Contents                                                     Introduction

                                                                                                                             47,079
     2    Introduction

                                                                                                                                                                                      convenience stores
                                                                 This is the 10th edition of the Local Shop
     3    Who we are
                                                                 Report, providing a comprehensive view          There
                                                                 of the growing UK convenience sector. The       are
     4    Where we trade
                                                                 Local Shop Report looks at where and how
                                                                 convenience stores trade, the lives of people                                                                        in mainland UK
                                                                 who run and work in stores, the contribution
     6    What we contribute to the economy
                                                                 that local shops make to the economy, and
                                                                 the essential role that these businesses play
     8    What we sell
                                                                 in their local communities. The information     Shop ownership
                                                                 in this report is gathered from our own
     10 The services and technology we offer
                                                                 primary research, surveying around 2,400
                                                                 independent retailers in addition to multiple                             Independent retailers                                   Unaffiliated independents
     12 Online and home delivery                                                                                                                                                                   Independent retailers operating under their
                                                                 and co-operative businesses representing                                                          40% Unaffiliated               own fascia.
     13 How we source products                                   over 6,200 stores. The report also draws                                                          independents
                                                                 on data supplied by William Reed, IGD,                                                            (including unaffiliated        Symbol groups

                                                                                                                                                     71%
     14 How we operate                                           the Plunkett Foundation, the Retail Data                                                          forecourts)                     Independent retailers who trade under a
                                                                 Partnership and Lumina Intelligence.                                                                                              common fascia e.g. Nisa. Multiple businesses
                                                                                                                                                                   31% Symbol group                can also trade under a symbol group e.g.
     16 Our colleagues                                                                                                                                             independents                   A.F. Blakemore (SPAR).
                                                                 Some of the figures in the report have been
                                                                 scaled to reflect the entire convenience                                                           (including franchises)
     18 Who we serve                                                                                                                                                                               Co-operatives
                                                                 sector. Detailed information about the
                                                                                                                                                                                                   Groups of stores that are owned by their members.
    20 Our communities                                           methodology and calculations in the report
                                                                 can be found on pages 22-23 and online at                                                                                         Convenience multiples
    22 Methodology                                               ACS.org.uk/research
                                                                                                                                                 Multiples                                         Retail businesses operating chains of 10 or more
                                                                                                                                                                                                   convenience stores under a centrally-owned
                                                                                                                                                                   22% Other multiples             fascia e.g. McColl’s.
                                                                                                                                                                   (including multiple 
                                                                                                                                                                   owned forecourts                Forecourts

   Who we are                                                   Why we are important                                                                 29%
                                                                                                                                                                   and multiples trading
                                                                                                                                                                   under symbol groups)
                                                                                                                                                                                                   Convenience stores located on petrol filling
                                                                                                                                                                                                   stations. Forecourts are included within each of

                 47,079
                                                                                                                                                                                                   the retailer types and can be unaffiliated, symbol

                                                                £43.2bn total sales
                                                                                                                                                                   7% Co-operatives                group, multiple or co-operative businesses.
   There are                                                                                                                                                                                       For more information about the forecourt sector
                                                                                                                 Source: WRBM 2021                                                                 please see the ACS Forecourt Report.

                  convenience stores in mainland UK
                                                                £9.8bn in GVA                                    Entrepreneurs

   71%                              are run by
                                    independent retailers
                                                                £534m invested
                                                                                                                 The people who
                                                                                                                 own and run
                                                                                                                 stores are:

                                                                                                                                           24%
                                                                                                                                                                                                                            33%
                                                                                                                                                                                                                            Female

   What we offer                                                392,000 jobs                                           21%                            20%             20%
                                                                                                                                                                                                                       67% Male
                                                                Most positive impact on the local area
                                                                                                                                                                                         14%
                                                                                                                                                                                                             White British                  48%
         76%                   49%            22%                                                                                                                                                            Asian or Asian British         44%
      Bill payment              Free to     Local grocery
         services              use cash       delivery
                               machines
                                                                1. Convenience stores       2. Pharmacies                  30              31 – 40    41 – 50           51 – 60              60+
                                                                                                                                                                                                             Other                          8%
                                                                                                                       or under
                                                            2                                                    Source: ACS/Lumina 2021                                          3                        Source: ACS/Lumina 2020     September 2021
acs.org.uk • @ACS_Localshops
The Local Shop Report 2021
Where we trade

                           47,079
There are                                                                                                                                           Wales has                                  Location
                                                                                                                                                    more shops per
                                                                                                                                                    head than any                                Rural
                                                                                                                                                    other part of
                           convenience stores
                                                                                                                                                                                                 A ‘traditional’ convenience
                                                                                                                                                                                                 store, often providing the
                                                                                                                                                    mainland UK
                           in mainland UK
                                                                                                                                                                                                 only shopping option for
                                                                                                                                                                                                 the local community.

Shop numbers
                                                                                                                                                                                                                                         SHOP                                                          COFFEE SHOP      SHOP        FASHION

                                                                                                                                                                                                                                     Rural: 37%                                                       Urban: 37%
                                                                                                                                                                                                                                                                                                                                                                             Urban
         Scotland                                                                                                           North East                        England total
                                                                                                                                                                                                 Suburban                                                                                                                                             Operating as part of a

        5,037                                                                                                                2,065                             39,067
                                                                                                                                                                                                                                                                                                                                                    mix of stores serving the
                                                                                                                                                                                                 Providing a focal point for
                                                                                                                                                                                                                                                                                                                                                     needs of those living in
                                                                                                                                                                                                 suburban communities and
         One shop per                                                                                                         One shop per                        One shop per                                                                                                                                                                     centres and the shopping
                                                                                                                                                                                                 estates sometimes standalone
         1,085 people                                                                                                         1,298 people                        1,459 people                                                                                                                                                                              needs of workers
                                                                                                                                                                                                 or alongside a small number of
                                                                                                                                                                                                                                                                                                                                                               and residents.
                                                                                                                                                                                                 other local services.                                                 SHOP     HAIRDRESSER

                                                                                                                                                                                                                                                              Suburban: 26%
      North West                                                                                                       Yorks/Humber                          East Midlands
                                                                                                                                                                                                                                                                                                                                                                         Source: WRBM 2021

          5,145                                                                                                               4,018                              3,560
         One shop per                                                                                                         One shop per                        One shop per
         1,437 people                                                                                                          1,381 people                        1,381 people                Neighbouring businesses

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

        2,975                                                                                                                                                     3,993                                                                                                                        LOCAL SHOP

         One shop per                                                                                                                                             One shop per
         1,066 people                                                                                                                                              1,581 people
                                                                                                                                                                                                               Located on a small parade
                                                                                                                                                                                                39%            Up to five retail/service businesses close by.

  West Midlands                                                                                                                                                     London                                                                                                                    LOCAL SHOP    HAIRDRESSER        BUTCHER

        4,499                                                                                                                                                    5,860
         One shop per                                                                                                                                             One shop per
                                                                                                                                                                                                               Located on a larger parade or a high street
         1,339 people                                                                                                                                             1,552 people
                                                                                                                                                                                                 9%            Up to 10 retail/service businesses close by.

                                                                                                                                                                                                                                                              PUB   BANK      COFFEE SHOP     LOCAL SHOP      FASHION          PHARMACY       RESTAURANT

      South West                                                                                                                                                South East

         4,144                                                                                                                                                    5,784                                        Located on a main high street or within a city centre
         One shop per
         1,383 people
                                                                                                                                                                  One shop per
                                                                                                                                                                  1,605 people
                                                                                                                                                                                                 15%           More than 10 retail/service businesses close by.

                                                                                                                                                                                                                                         CHARITY   TAKEAWAY   PUB   BANK      COFFEE SHOP     LOCAL SHOP       FASHION          PHARMACY      RESTAURANT   HAIRDRESSER    BETTING   SPORTS

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                                                                                                    4                          All data on this page – source: WRBM 2021 and ONS projections   Source: WRBM 2021                                                      5                                                                                                  September 2021
acs.org.uk • @ACS_Localshops
What we contribute to the economy

  Economic contribution                                                                                                                      Percentage of stores investing

 Over the last year, the convenience sector contributed
                                                                                                                                             28%                     Unaffiliated
                                                                                                                                                                     independents                             28% Symbols 42% Multiples
 Over £9.8bn in GVA                                                                                                                          Areas of Investment (of those investing)
 and over £8.7bn in taxes
 £0* Business rates
 £0* Business rates contributions were £274m in 2019/20          HM Revenue
                                                                 & Customs    VAT Return
       £293m Corporation tax                                                                          £746m
                                                                                                         VAT
           £392m Employer National                                  HM Revenue                                                     £475m
                                                                    & Customs    Tax Return
           Insurance contributions                                                                                                 PAYE                                                                                                      Shelving 22%                   Store signage 21%
                                                                                                                                                                                                   Internal building
                                                                                                                                                   Refrigeration 32%                               maintenance 24%

                                      £6,808m Excise duties (exc. fuel)

  Direct                                                   Indirect taxes                                                                                In-store lighting 14%                      Freezer space 12%                  Air conditioning 10%          Crime prevention
                                                                                                                                                                                                                                                                      measures 10%
  taxes

£0bn          £1bn           £2bn            £3bn         £4bn            £5bn             £6bn   £7bn              £8bn              £9bn
                                                                                                                                                                                                                         NEW Store
                                                                                                                                                                                                                       Opening Soon!

                                                                                                   Source: ACS 2021/Retail Economics 2020

                                                                                                                                                                                                                Full store refits 6%                   Parking                  Improving store
                                                                                                                                                                                   Internal building
  Investment                                                                                                                                     Till systems
                                                                                                                                               (e.g. EPOS) 10%                     development 8%                                                    provision 6%                 access 6%

                                                £534m
 Over the last year,
                                                                                                            in their
                                                                                                                                             Main source of investment
 convenience stores
 have invested                                                                                              businesses

  Average annual investment by store type:
                                                                                                                                                                                              67%                                                         12%           9%         7%     5%

 Unaffiliated                               Symbols:                                        Multiples:
 independents:
                                            £11,740                                         £13,814
 £9,785                                                                                                                                                                                                         Funded/provided by symbol group               
                                                                                                                                                                                                                                                   Financial institutions   
                                                                                                                                                              Funded from own reserves             
                                                                                                                                                                                                                                                   Funded/provided by suppliers    
                                                                                                                                                                                                                                                        Other business/wholesale funding   
                                                                     6                            Source: ACS Investment Tracker 2020/2021
                                                                                                                                             All data on this page – source: ACS Investment Tracker 2020/21                7                                                      September 2021
  acs.org.uk • @ACS_Localshops                                                                                                               (Sources of investment refers to independents only)
What we sell

£43.2bn =
Total value of sales                                                                                                                             Category sales: Independents only (2021)
                                                                                                over one fifth
                                                                                                of the total                                                                             Hot food-to-go 0.2%
                                                                                                                                                                                Pet food and pet care products
                                                                                                                                                                                                                                            Fruit &
                                                                                                                                                                                                                                        vegetables
                                                                                                                                                                                                                                                      Sandwiches
                                                                                                                                                                                                                                                        & wraps
                                                                                                                                                                                                                                                                           Non-
                                                                                                                                                                                                                                                                           food
                                                                                                                                                                                                                                                                                       Health &
                                                                                                                                                                                                                                                                                       beauty
                                                                                                grocery market                                                                                                                     1%
(in the convenience sector in the year to March 2021)
                                                                                                                                                                                                                                              1.5%      0.5%                      1%

                                                             £47.1bn by 2024
                                                                                                                                                                                                                                                                    1.2%
The convenience sector is                                                                                                                                                                23.2%                                                3.5%                         1.6%
is expected to grow to                                                                                                                                                                                                         4.2%                                        Household
                                                                                                                                                                                                                                              Bread & bakery
                                                                                                                                                                                          Alcohol
                                                                                                                                                                                                                               Chilled
                                                                                                                                                                                                                                                                    3.2%
                                                                                                                                                                                                                                               3.7%
                                                                                                                      Source: ACS/Lumina 2021
                                                                                                                                                                                                                               foods                             News & magazines
                                                                                                                                                                                                                                             Canned & packaged
Number of products sold                                                           Payment methods
                                                                                                                                                                                                                                                                       1.8%
                                                                                                                                                                                                                                                  grocery

                                                                                                                                                                                                                                                                      Frozen foods
On average, there are around:                                                                                                                                                                                                                   5.8%
                                                                                    99%                                                                                                                                                                                2.5%

4,100 SKUs
                                                                                                                                                                                            33.8%
                                                                                                    Cash                                                                                                                                        Confectionery
                                                                                                                                                                                                                                                                      Savoury snacks

                                                                                                                                                                                            Tobacco and
                                                                                    97%
                                                                                                                                         DEBIT
                                                                                                    Debit card                                                                              E-cigarettes
                                                                                                                                                                                                                                                      9.2%                    2.1%
                                                                                                                                                                                                                                                  Soft drinks
                                                                                    95%                                                                                                                                                                                           Fresh
                                                                                                                                    CREDIT
                                                                                                    Credit card
                                                                                                                                                                                                                                                                                  milk

sold in an
                                             (products with different barcodes)

                                                                                    85%
                                                                                                    Contactless and
independent convenience store                                                                       mobile payment                                   Source: The Retail Data Partnership 2021 – data refers to independent retailers only

during the course of a year                                                          51%
                                                                                                    Card not present
                                                                                                                                                 Category sales: Overall market (2020)
                                                                                                                                 DEBIT

                                                                                                    transactions

Source: Retail Data Partnership                                                   Source: ACS/Lumina 2020/2021
                                                                                                                                                                    Hot food and drinks to go             0.4%                  Non-food                            Sandwiches & wraps

Food service                                                                                                                                                                                                                                1.0%         1.2
                                                                                                                                                          3.3%                            3.1%                          2.9%                                          2.6%
                                                                                                                                                        Fresh milk
                                                                                                                                                                                        Savoury
                                                                                                                                                                                         snacks                       Household                  4.2%                 Frozen foods
                                                                                                                                                                                                                                               Fruit & vegetables
                                                                                                                                                                                                                                                                       2.8%
                                                                                                                                                                                                                                               4.7%
                                                                                                                                                                                                                                                                      News & magazines
     39%
   Customer
                                  31%
                                  In-store
                                                22%
                                                 Hot food
                                                                  19%
                                                                    Food
                                                                                  15%
                                                                                  Serve over
                                                                                                        13%
                                                                                                       Food-to-go
                                                                                                                              11%
                                                                                                                             Microwave
                                                                                                                                                                                      18.4%                                                   Bread & bakery            1.3%
 operated coffee
    machine
                                   bakery       counter or
                                                 cabinet
                                                                 preparation
                                                                 area/kitchen
                                                                                    coffee
                                                                                   machine
                                                                                                       concession          for customers                                              Alcohol
                                                                                                                                                                                                                             6.5%                                      Health & beauty

                                                                                                                 Source: ACS/Lumina 2020/2021
                                                                                                                                                                                                                                Soft
                                                                                                                                                                                                                               drinks
                                                                                                                                                                                                                                                  5.6%
                                                                                                                                                                                                                                                  Confectionery
The percentage of stores in the convenience sector that sell each of the following products is:

                                                                                                                                                                                   20.6%                                                                                7.8%
Alcohol licence                                     Wood/domestic burning fuel                 Plants or horticulture products                                                     Tobacco and
                                                                                                                                                                                   E-cigarettes
                                                                                                                                                                                                                                                 12.8%                 Canned &
                                                                                                                                                                                                                                                                       packaged

76%                                                19%                                         39%
                                                                                                                                                                                                                                                 Chilled foods          grocery

                                                                                                                                                     Source: IGD 2020 – data refers to overall convenience market

                                                                      8                                                                                                                                                        9                                                  September 2021
acs.org.uk • @ACS_Localshops
The services and technology we offer

The percentage of stores in the convenience sector that provide each service is as follows:                                                    The percentage of stores in the convenience sector that have each of the following are:

                                                                                                                                                                 74%
                             2

                                                                                                                                                                                                                              7%
                                  7    32                                                                                                                                             EPoS                                                 Indoor
                        18                                                                                                                                                                                                                 seating
                                      25
                                 46                                                                                                                                                                                                        areas

     82%
  Mobile phone
                             81%
                             Lottery
                                              76%
                                            Bill payment
                                                                    70%
                                                                      Cash
                                                                                             49%
                                                                                           Free to use
                                                                                                                        30%
                                                                                                                         Parcel
                                                                                                                                                                 47%                  Store website

                                                                                                                                                                                                                              7%
    top-up                                     services               back               cash machines              collection point                                                                                                       Outdoor
                                                                                                                                                                                                                                           seating

                                                                                                                                                                 33%
                                                                                                                                                                                                                                           areas
                                                                                                                                                                                      In-store Wi-Fi

     29%                     24%              23%                   22%                      18%                         15%
                                                                                                                                                  SAVE 30%
                                                                                                                                                                  31%                 Digital advertising screens
                                                                                                                                                                                                                          48%              Community
                                                                                                                                                                                                                                           noticeboards

     Click and            Post office       Charged cash          Local grocery            Home news                   Food bank
   collect service                            machine               delivery                delivery                     usage
 (e.g Collect Plus)
                                                                                                                                                                  15%                 Mobile marketing platform/

                                                                                                                                                                                                                              12%
                                                                                                                                                                                      loyalty scheme
                                                                                                                                                                                                                                           Customer
                                                                    Car wash
                                                                                                                                                                                                                                           toilets
                                                                       4%
                                                                    Jet wash
                                                                    (manual)

                                                                       3%
                                                                                                                                                                    11%               Self-service checkouts

                                                                                                                                                                                                                                           Power outlets/

                                                                                                                                                                                                                              5%
                                                                   Automatic
      12%                      8%              7%                machine car wash
                                                                                               4%                         3%                                                                                                               USB ports

                                                                                                                                                                     8%
                                                                                                                                                                                                                                           for charging
    Click and
 collect services
                       Recycling bins       Dry cleaning               1%                 Photo booth                 Prescription
                                                                                                                      collections
                                                                                                                                                                                      Digital shelf edge labels                            customer devices
                                                                  Hand car wash
  for groceries                                                     (attended)

                                                                                                             Source: ACS/Lumina 2020/2021                                                                                                                 Source: ACS/Lumina 2020/21

Accessibility in stores                                                                                                                        CCTV                                                    Energy saving
The percentage of convenience stores that have:                                                                                                                                                        50%
                                                                                                                                                                                                               47%
                                                                                                                                                                                                                                43%
                59%                           45%                                 41%                                    26%                                                                           40%

                Wheelchair                    Wide aisles                         Parking                                  Hearing                                                                                                              33%
                 access                                                                                                   aid loops

                                                                                                                                                       91%
                                                                                                                                                                                                       30%

                                                                                                                                                                                                       20%
Most valuable services
                                                                                                                                                                                                                                                                        5%
Consumers think that the                                                                                                                                of stores                                      10%

most valuable services offered
in their convenience store are:                                                                                                                        have CCTV                                       0%
                                                    Cash machine                    Post office                 Click and collect                                                                              LED lighting    Chiller doors   Smart meters      Solar panels

                                                            10                      Source: ACS Consumer Polling 2020 – collected by Populus   All data on this page: Source: ACS/Lumina 2020/2021                   11                                            September 2021
acs.org.uk • @ACS_Localshops
Online and home delivery                                                                                                                How we source products

Social media and online searches                                                                                                        How independent retailers source their products

                                                                                                                                                              42%                                                            37%                                   21%
                                                                    Top five rising searches related to
   50%             37%           31%       12%        12%           convenience stores:

                                                                                                                                                          I get all of my products                                        I get some products               I get all of my products
                                                                                                                                                                  delivered                                             delivered and some from               from a cash and carry
                                                                                                                                                                                                                            a cash and carry

 Facebook         Twitter      Instagram   TikTok   WhatsApp
                                                                       1. Shop near me
Source: ACS/Lumina 2020/2021

                                                                       2. Local farm shop
More customers searched for
convenience stores on Google                                           3. Nearest local shop
during the week of Christmas
                                                                       4. Local shop delivery
(21st – 27th December) than any
other time in the last 12 months.                                      5. Local corner shop

Source: Google Trends                                                                                          Source: Google Trends
                                                                                                                                                            11%                                                                 21%                                            5%
                                                                                                                                                       Majority of                                                            Roughly the                                  Majority from a

Home delivery                                                                                                                                      products delivered                                                        same amount                                   cash and carry

                                                                                                                                                                                                                                                               Source: ACS/Lumina 2020/2021

Of stores who currently offer home delivery/click and collect services:
                                                                                                                                        Additional space in stores

                                                                                                                                        23% of independent retailers have no additional space in stores
                                                                                                                                         Multiples  Independents                                     48%                                  50%
                                                            39%                                     28%
                                                     offer home delivery for
                                                    customers who order over
                                                                                            offer home delivery
                                                                                         for vulnerable customers
                                                                                                                                                                26%                    26%                                   23%
                                                            the phone                                                                                                                                                                                       13%                 14%
                                                                                                                                             0%
                                                                                                                                              None             1-499 sq. ft.      500-999 sq. ft.   Over 1000 sq. ft.        None        1-499 sq. ft.   500-999 sq. ft.    Over 1000 sq. ft.
                                                                                                                                                                                                                                                                     Source: ACS/Lumina 2019

                                                                                                                                        Use of online wholesaler platforms
                    15%                                     10%                                      8%
     offer home delivery through a                     offer home delivery               offer a click and collect

                                                                                                                                              50%                                10%                             9%                         9%                       42%
     third-party app, e.g. Deliveroo,                through a store website                service (or similar)
             SnappyShopper

Of stores offering these services:
                                                                                                                                                                                                                                                                       Do not
                                                                                                                                             Ordering                             Click and                   Comparing                 Finding out
                                                                                    71%     have no minimum spend
                                                                                                                                            products for                       collect service                 prices of                about new
                                                                                                                                                                                                                                                                     use online
                                                                                                                                                                                                                                                                     wholesaler
                                                                                    82% have no delivery charge                               delivery                          for products                   products                product lines
                                                                                                                                                                                                                                                                     platforms
                                                                                    86% have no premium pricing
                                                               12                        Source: ACS Voice of Local Shops Survey 2021   Source: ACS Voice of Local Shops Survey 2021                                    13                                                   September 2021
acs.org.uk • @ACS_Localshops
How we operate

90%
                                                                                                                                  Sales space
                                   of independents operate one store
                                                                                         Source: ACS/Lumina 2020/2021              Multiples  Independents
                                                                                                                                                                                                                 51%
                                                                                                                                                                                       45%
Working hours                                                                                                                                                     37%                                                               39%

10%                                                                          49%
                                                                                                                                         18%
                                        of shop owners                                                                                                                                                                                                     10%
                                        work more than
                                        70 hours per week
                                                                             take no holiday per year                                  1-999 sq. ft.         1,000-1,999 sq. ft.   2,000-3,000 sq. ft.          1-999 sq. ft.   1,000-1,999 sq. ft.   2,000-3,000 sq. ft.

                                                                             Source: ACS/Lumina 2021 (independents only)

Opening hours                                                                                                                     Business origin

                       Opening                                               Closing
                                                                                                                                                                 28% inherited family business
                 5am and earlier   4%
                                                                       5pm and earlier
                                                                       6pm
                                                                                             12%
                                                                                             7%
                                                                                                                                                                 72% started business
                 6am               28%
                                                                       7pm                   6%
                 7am               41%
                 8am               14%
                                                                       8pm
                                                                       9pm
                                                                                             10%
                                                                                             10%
                                                                                                                                  Employment of family members
                 9am and later     8%
                                                                       10pm                  34%
                 10am and later    4%

                                                                                                                                   39%                                                      52%
                                                                       11pm and later        21%
                                                                                                                                                       of retailers employ at least                              of retailers employ
                                                                                                                                                       one family member                                         no family members

                                                           Average opening hours          Typical convenience
                                                                                                                                                                                           41%                of businesses are owned by family partnerships

                    24
                    are open                                                              stores are open

   3%                                    Closed
                                                8%         13.9 13.1
                                                           Monday to    Sunday
                                                                                                      ✶

                                                                                                          ✶
                                                                                                              ✶
                                                                                                                  ✶
                                                                                                                      ✶
                                                                                                                              ✶

                                                                                                                                  Time in business
                    hours
                                                                                                                  ✶

                                         on Sunday
                                                                                                      ✶                   ✶

                                                            Saturday                          7am until 10pm

                                  34% Own            66% Rent
                                                                                                                                  Five years or less                                                                                                           34%
Premises ownership                                                                                                                            Six to 10                                                          19%
   Multiples
                                                                                                                                                11 to 15                               11%
                                  34% Own            66% Rent                                                                                  16 to 20                                 12%
 Independents                                                                                                                                  21 to 25                 6%
                                                 56% Own            44% Rent                                                      26 years or more                                                             18%
                                                      14                                                                          Source: ACS/Lumina 2020/2021                                           15                                               September 2021
acs.org.uk • @ACS_Localshops
Our colleagues

                                  392,000 jobs                                                                            61%                                                          92%
Convenience stores
                                                                                                                                                              are satisfied                                                have a permanent
in mainland UK
provide over
                                                                                                                                                              with their job                                               employment contract
                                                                                                                                                                                                                                       Source: ACS Colleague Survey 2021

Colleagues in the convenience
sector worked a combined                          9.6m hours                      over the last year
                                                                                               Source: ACS/Lumina 2021
                                                                                                                          Length of employment

Colleagues in the convenience sector are:
                                                                                                                                  17%                                  46%                                    15%                                22%
                                                        70% 30%                  Source: ACS Colleague Survey 2021

           18%                                                                    72% 10%
                                                                                                                           Less than one year                      One to five years                       Six to 10 years                 More than 10 years
                                                                                                                                                                                                                                               Source: ACS/Lumina 2021

   16-24 years old                                                        25-60 years old                 Over 60
                                                                                                                          Contribution to household income
                                                                                               Source: ACS/Lumina 2021

Hours worked

                         30%                            34%               19%                         18%
                               0-16                     17-30              31-40                            40+
                               hours                     hours              hours                          hours

                                                                                               Source: ACS/Lumina 2021
                                                                                                                                     33%                              47%                                14%                              6%
   23%                                                  32%
                         of colleagues                              of colleagues                                             I am the only income earner          There is more than one             There is more than one     There is more than one income
                         have childcare                             care for other                                                  in my household             earner, I do not earn the most        earner, I earn the most    earner in my household and we
                         commitments                                family members                                                                                                                                                   earn roughly the same
                                                                                                                                                                                                                                       Source: ACS Colleague Survey 2021
                                                                                 Source: ACS Colleague Survey 2021

                                                                                                                          Job security
Travel to work                                                                                        0
                                                                                                                                                                                        Neither secure nor insecure                  Somewhat insecure
                                                                                                55         5

Average travel cost                                 Average travel time                   50                    10
                                                                                                                                     Very secure        26%                            Somewhat secure         41%                     19%            9%         5%

£1.52                                               10 minutes
                                                                                        45                       15

                                                                                                                                                                                                                                              Very insecure
                                                                                          40                    20

per day
                                                                                                                                                                                                                                       Source: ACS Colleague Survey 2021

                                                                                                                          Future plans
                                                                                               35          25
                                                                                                     30

Mode of travel to work
                                                                                                                          39%          Same / similar role with my current employer                   11%      Not working/retired

         55%                              33%                      8%                                     5%              16%
                                                                                                                          14%
                                                                                                                                       A job outside of the sector

                                                                                                                                       More senior role with my current employer
                                                                                                                                                                                                      11%
                                                                                                                                                                                                      8%
                                                                                                                                                                                                               Other
                                                                                                                                                                                                               Similar / more senior role with a different
          Walk/on foot                    Drive                    Public transport                       Other                                                                                                employer in the same industry

                                                   16                                 Source: ACS Colleague Survey 2021   Source: ACS Colleague Survey 2021                                      17                                                   September 2021
acs.org.uk • @ACS_Localshops
Who we serve

Convenience customers are:                                                                                                            How often customers visit

                                           51% 49%
                                                                                                                                      Every day                                                            About once a week
                                                                                                                                                                                                     7%    (1-2 times a week)                                           39%

                                                                                                                                      Most days                                                            Less than once
                                                                                                        Source: Lumina CTP 2021       (5-6 times a week)                                            14%    a week                                                       27%

How customers get to store                                                                                                            Every other day
                                                                                                                                      (3-4 times a week)                                            13%
                                                                                                                                                                                                           The average customer
                                                                                                                                                                                                           visits their local store          2.5      times per week

                                                                                                                                                                                                                                                        Source: Lumina CTP 2021

         56%
          Walk/on foot
                                           39%
                                           Drive
                                                                              2%
                                                                              Public transport
                                                                                                                    3%
                                                                                                                    Other
                                                                                                                                      Purchases
                                                                                                        Source: Lumina CTP 2021

Distance travelled to store                                                                                                                                                              The average            The                          Ten
                                                                                                                                                                                         basket size is         average                      Pounds

                                                                                                                                                                                         3.3
                                                                                                                                                                                                                spend is
                   17%

                                                                                                                                                                                                                £10.82
                    Less than
                    100 yards

                                                                                                                                                                                         items
                                51%
                                 Less than
                                 1/4 mile
                                                                                                                                                                                                                                                         Source: Lumina CTP 2021

                                                                                                           80%
                                                                                                                                      Customer’s relationship with convenience store colleagues
                                                                                                           Less than
                                                                                                           1 mile

                                                                                                                     20%
                                                                                                                     More than
                                                                                                                     1 mile                                                                                                      Morning,
                                                                                                                                                                                                                                 how are
                                                                                                                                                                                                                                you today?
            0     100 yards     1/4 mile                                                                  1 mile
                                                                                                                                                                                                                            Morning,
                                                                                                        Source: Lumina CTP 2021                                                                                           fine thanks

If their local shop was no longer there,                                                                    More than
customers would have to travel:                                                        4-5 miles              5 miles
                                                                  2-3 miles
                                                   About a mile
                                 Less than
                                    a mile

                                       43%                27%        20%                     4%                     6%
                                                                                                                                      10%      of customers                   29%       of customers        36%         of customers         24%         of customers
          Average =                                                                                                                   know the people running                 know the people running       don’t know the people            don’t know the people
           1.5 miles                                                                                                                  and working in their local              and working in their local    running and working in           running and working
                                                                                                                                      shop very well                          shop quite well               their local shop well,           in their local shop and
                                                                                                                                                                                                            but will occasionally            don’t interact with them
                                                                                                                                                                                                            have a conversation

                                                          18          Source: ACS Consumer Polling 2021 – conducted by Populus    Source: ACS Consumer Polling 2021 – conducted by Populus                 19                                                 September 2021
acs.org.uk • @ACS_Localshops
Our communities

Most positive impact on the local area                                                                                                                                            Community activity

                                                                                                                                                                                  80%
                                                                                                                                                                                                                       of independent retailers engaged in
                                                                                                                                                                                                                       some form of community activity
                                                                                                                                                                                                                       in the past year

                     1. Convenience stores                                 2. Pharmacies                                   3. Post offices
                                                                                                                                                                                  68%
                               54%                                                           49%                               41%                                                Collecting money
                                                                                                                                                                                  for a national or
                                                                                                                                                                                  local charity
                                                                                                                                                                                                                           15%                                                    13%
                                                                                                                                                                                                                                                                                  Providing sponsorship to a local sports team or
                                                                                                                                                                                                                                                                                  other community activity
                                                                                                                                                                                                                            Providing funding, or in kind support,
                                                                                                                                                                                                                            to a community event

                                                                                                                                                                                                              8%
                                                                                                                                                                                  Taking part in community, council
                                                                                                                                                                                                                                                7%
                                                                                                                                                                                                                                                 Litter picking or other
                                                                                                                                                                                                                                                                                                                   32%
                                                                                                                                                                                                                                                                                                                   Donating to
                    4. Pubs/bars                               5. Banks                            6. Coffee shops/cafés 7. Specialist food shops                                 or local business association                                  local environmental                                               a food bank

                       19%                                     16%                                          13%                         11%                                       meeting or project                                             campaigns

                                                                                                                                                                                                                                                                                        Source: ACS Voice of Local Shops Survey 2020/2021

                                                                                                                                                                                   58%
                                                                                                      f
                                                                                                                                                    Enigma Hair & Beauty
                                                                                                                                                                                                                      of retailers agree that the Covid-19 pandemic has
                                                                                                                                                                                                                      improved their business’ standing in their community

 8. Fast food / Takeaway

          10%
                                                   9. Petrol station

                                                                9%
                                                                                                                   10. Restaurants

                                                                                                                         9%
                                                                                                                                                  11. Hairdressers

                                                                                                                                                         7%
                                                                                                                                                                                   31%                                of consumers say that they choose which local shops
                                                                                                                                                                                                                      to support based on their community activity

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                                                                                                                                                                                  Community owned shops
                  12. Charity shops    13. Gyms/sports facilites                                          14. Non-food           15. Betting shops                                There are                           Providing essential services to around               Over                       Around

                        7%                                      6%                                           3%                          1%
                                                                                                                                                                                  401
                                                                                                                                                                                  community owned shops
                                                                                                                                                                                                                     150,000 675 7,000
                                                                                                                                                                                                                      people in remote, rural communities                  paid jobs created          volunteer positions
Top three most wanted services                                                                                                                                                    trading in the UK                                                                                                   created

                                                                                                                                                                                                                                                                                          92.5%
                                                                                                                                                                                    Community shops generated                            There are over

                                                                                                                                                                                   £58m
                                                                                                                                                                                                                                         1,200
                                                                                                                                                                                    a combined turnover of over
                                                                                                                                                                                                                                                                       young
                                                                                                                                                                                                                                                                       people             success rate of
                               Banks                               Specialist food shops                                     Non-food                                                                                                    that benefit from work experience                community
                                                                                                                                                                                                                                         or volunteering opportunities in
                                1                                                             2                                   3                                                                                                      community owned shops                            owned shops

                                                                                              20                     Source: ACS / Yonder consumer polling 2021 – percentage of
                                                                                                                                                                                  Source: Plunkett Foundation 2021                                       21                                                            September 2021
acs.org.uk • @ACS_Localshops                                                                                                   consumers naming each service in their top three
Methodology

New primary data for the Local Shop Report was undertaken by ACS in the                References                                                                          How we source products (page 13)                                                        Who we serve (page 18-19)
form of two surveys:                                                                                                                                                       •	Additional space in store – Data obtained from independent and                       •	Majority of data in this section was obtained from Lumina Intelligence
                                                                                       Who we are (page 3)                                                                    multiple surveys.                                                                       CTP 2021.
1. Independent Retailer Survey – A sample of 2,420 independently owned                 •	Total number of convenience stores in mainland UK – Figure sourced               •	Opening hours – ACS independent and multiple surveys asked respondents               •	Data relating to customers relationship with convenience colleagues and
convenience store businesses in the UK. ACS commissioned Lumina                           from WRBM.                                                                          what time of day they open and close for the different days of the week.                how far customers would have to travel if their shop was no longer there
Intelligence to aid in the design and delivery of the survey. The survey was           •	Shop ownership – ACS calculation based on figures sourced from WRBM.                Results for independents and multiples were collated and combined                       was obtained from ACS Consumer Polling 2021.
carried out over the phone by BCC Marketing between 31st May and 23rd July             •	Entrepreneurs – Data obtained from the ACS Independent Retailer Survey              according to their proportion of stores in the market, to determine overall
2021. The telephone survey gathered responses from unaffiliated independent               and reflects independent retailers only (including those who own symbol             results for the sector. Average number of hours open includes stores closed          Our communities (page 20-21)
convenience stores, independent forecourt stores and independent stores that              stores and forecourts). ‘Prefer not to say’ responses were excluded from            on Sunday or open 24 hours. Opening and closing times however exclude                •	Most positive impact – Respondents were asked “which of the following
are part of a central buying or marketing group (known as ‘symbol’ groups).               analysis. Asian or Asian British’ category combined results received for            those closed on Sunday or open 24 hours.                                                types of services (if any) do you believe have the most positive impact on
These are represented in the survey in the same proportion as they are                    each of the following categories: Asian or Asian British, Indian, Pakistani,                                                                                                your local area? Select up to three. Answers were ranked to reflect opinion.
represented in the market. The survey covers the nine regions of England,                 Bangladeshi, any other Asian background.                                         How we operate (page 14-15)                                                             •	Top three most wanted services – Respondents were asked “for each of
along with Wales and Scotland.                                                                                                                                             •	Product sourcing/Family members/Time in business – Data obtained from                   the following types of services, please indicate whether you think that it
                                                                                                                                                                              the ACS Independent Retailer Survey and reflects independent retailers                  would be beneficial for your local area to have more or less of these types
                                                                                       Where we trade (page 4-5)
2. Multiple Retailer Survey – ACS conducted an online survey of its multiple                                                                                                  only (including those who own symbol stores and forecourts).                            of services, or if you think the number should remain the same?” A wanted
chain members. This survey was based on the questions asked in the                     • Store numbers – Figures sourced from WRBM.                                        • Premises ownership/Accessibility – Data obtained from independent and                   index was calculated for each service by taking the % who stated more away
Independent Retailer Survey, where relevant, to ensure consistency and accuracy        •	Store numbers were divided by the ONS population estimates to obtain                multiple retailer surveys. For independents data reflects an average of                 from those who stated less. Answers were ranked to reflect opinion.
of results. This survey returned results relating to a sample of 6,200 stores.            population per store.                                                               2020 and 2021 results, as two-year averages account for any variations in            •	Community activity – Data was obtained from averaging the results from
                                                                                       •	Location – Rural/urban/suburban split sourced from WRBM. Definitions are            sampling and methodology changes.                                                       the most recent four ACS VOLS surveys (August 2020 to May 2021) and
The results of these two surveys have been collated and figures for                       based on population density and are derived from postcode data:                  •	Sales space – Data obtained from independent and multiple surveys.                      reflects independent retailers only (including those who own symbols
independents and multiples have been combined according to the proportion                 • Urban (density above 30 people per sq. km)                                                                                                                                stores and forecourts).
of stores in the market, in order to determine overall results for the sector.            • Suburban (density 10-30).                                                      Our Colleagues (page 16-17)                                                             •	Community shops – Number of community owned shops obtained from
                                                                                          • Rural (density 0-10).                                                          •	Jobs – Per store employment figures obtained from ACS independent                       Plunkett Foundation 2021 database.
William Reed Business Media (WRBM) – Store numbers and sector data                     •	Neighbouring businesses – Data obtained from the ACS Independent                    and multiple surveys. An average number of staff per store figure was                •	In-store – % of retailers who offer each was obtained from independent
WRBM continually updates data through re-registering customers thereby                    Retailer Survey and reflects independent retailers only (including those who        calculated for both independent and multiple retailers. The average number              and multiple retailer surveys. Results for independents and multiples were
adding changed recipients, closures, and new stores. This is through postal,              own symbol stores and forecourts).                                                  of staff per store was then multiplied by the total number of stores in                 collated and combined according to their proportion of stores in the market,
telephone research, online delivery and events, plus the ongoing work of                                                                                                      the sector (based on figures from WRBM). Results for independents and                   to determine overall results for the sector. Where specified data reflects an
the editorial teams on its brands Convenience Store, Forecourt Trader                  What we contribute to the economy (page 6-7)                                           multiples were collated and combined according to their proportion of                   average of 2020 and 2021 results, as two-year averages account for any
and The Grocer.                                                                        •	Economic contribution – ACS calculation based on 2021 data, methodology             stores in the market, in order to determine overall results for the sector.             variations in sampling and methodology changes.
                                                                                          originally sourced from ACS Economic Project conducted by Retail
Independent sales category data – The Retail Data Partnership                             Economics in 2018.                                                               The average employment figure was calculated by dividing the total number               Throughout the report, where percentages do not add up to 100%, this is due
The Retail Data Partnership (TRDP) supplies EPpoS systems to independent               •	Annual investment – Average investment per store was obtained quarterly          of jobs in the sector by the total number of stores in the sector. The following        to rounding.
retailers throughout the UK. Independent sales data is collected by receiving             from the Voice of Local Shops survey for independent retailers and from the      averages were identified for jobs per store in each retailer type:
sales data back from around 3000 sites each day that cover £1.8bn of sales                Multiple Investment Tracker survey for multiples. Respondents were asked to                                                                                              For more information about The Local Shop Report please visit the ACS
each year.                                                                                estimate the cost of investment in their store over the last three months. The    • Unaffiliated independents (excluding forecourts): 3.77.                              website or email rosie.wiggins@acs.org.uk
                                                                                          average investment per store was then multiplied by the number of stores          • Independently owned symbol stores (excluding forecourts): 9.50.
ACS Economic Report                                                                       for each store type in the sector, (figures taken from WRBM) and added            • Independently owned forecourts: 7.36.
ACS commissioned Retail Economics to provide an economic overview of the                  together to give an investment figure for each quarter. Quarterly results were    •	Multiples (Inc. co-operatives, forecourt multiples, multiply owned symbol
convenience sector in 2018. ACS have updated the figures for 2021 based on                added together to provide an annual amount invested.                                 stores): 15.4.
revised data.                                                                          •	Top areas of investment – For unaffiliated independents and independent           • Sector average: 8.35.
                                                                                          symbol groups the data was obtained from the Voice of Local Shops survey
Convenience Tracking Programme 2021 – Lumina Intelligence                                 and for multiples, results were obtained from the Multiple Investment Tracker    •	Rest of data obtained from ACS Colleague Survey 2021.
This programme is a survey of over 20,000 convenience shoppers conducted                  survey. Results for unaffiliated independents, symbol group independents
at the ‘moment of truth’ in store.                                                        and multiples were collated and combined according to their proportion of
                                                                                          stores in the market. The results were calculated for the latest four quarters
Community Barometer
                                                                                          (August 2020 to May 2021) and an overall average was taken.

                                                                                                                                                                           Acknowledgements
Populus surveyed a nationally representative online sample of 1,075 UK adults
                                                                                       •	Sources of investment – Data was obtained from the Voice of Local Shops
aged 18+, between 25th and 27th June 2021. Respondents were surveyed using a
questionnaire designed by ACS.                                                            survey and refers to independent retailers only (including unaffiliated and
                                                                                          symbol group independents). Results were calculated for the latest four
For more Community Barometer results please visit the ACS website or email                quarters (August 2020 to May 2021) and an overall average was taken.
rosie.wiggins@acs.org.uk                                                                                                                                                   This report would not have been
                                                                                       What we sell (page 8-9)
ACS Voice of Local Shops                                                               •	Sales/market share – Figures sourced from Lumina Intelligence.                   possible without the support of a
A quarterly telephone survey with a sample of 1,210 independent retailers,             •	Overall category sales – Figures sourced from IGD referring to H1 2020.          number of industry and research
covering the nine regions of England, along with Wales and Scotland. The               •	Independent category sales – Figures sources from the Retail Data Partnership
sample consists of unaffiliated, symbol group and forecourt independents                  2021. Data refers to independent sales data only, up to March 2021.              organisations that have helped by
which are represented in the survey in the same proportion as they are in the          •	Product information – Data obtained from independent and multiple retailer       providing data. These sources are
market. Lumina Intelligence aid in the design and delivery of the survey.                 surveys. Results for independents and multiples were collated and combined       referenced alongside the relevant
                                                                                          according to their proportion of stores in the market, to determine overall
ACS Investment Tracker – Data obtained in the form of two surveys:                        results for the sector. Where specified, data reflects an average of 2020 and    sections of the report, and those
ACS Voice of Local Shops survey – Questions are asked relating to the amount              2021 results, as two-year averages to account for any variations in sampling     organisations are:
retailers have invested over the past quarter, what they have invested in and             and methodology changes.
how they have funded their investments.
                                                                                       The services and technology we offer (page 10-11)
Multiples Investment Tracker survey – A sample of over 3,000 multiple stores           •	Data obtained from independent and multiple retailer surveys. Results for
in the UK. Questions in the Multiple Investment Tracker survey are based on the
questions asked in the Voice of Local Shops survey, where relevant, to ensure
                                                                                          independents and multiples were collated and combined according to
                                                                                          their proportion of stores in the market, to determine overall results for
                                                                                                                                                                           About ACS
consistency of results.                                                                   the sector. Where specified, data reflects an average of 2020 and 2021
                                                                                          results, as two-year averages to account for any variations in sampling and
The results of these two surveys are collated and combined according to
                                                                                          methodology changes.
the proportion of independent and multiple stores in the sector. The ACS                                                                                                   The Association of Convenience Stores is a trade association                            We represent the interests of retailers on a range of issues,
Investment Tracker is completed every quarter and an average has been taken                                                                                                representing local shops across the UK.                                                 including business rates, energy, regulation, planning, alcohol
                                                                                       •	Most valuable services – Data obtained from ACS Consumer Polling.
across the latest four quarters (August 2020 to May 2021).
                                                                                          Consumers were asked which services they had available to them in their                                                                                                  and many more.
                                                                                          local shop. Consumers were then asked, ‘of the services that are available in
ACS Colleague Survey
                                                                                          your local shop/ convenience store, which is the most valuable to you?’
                                                                                                                                                                           We represent our members through effective lobbying,
An online survey with a sample of 7,403 staff working within the convenience
sector. The fieldwork was conducted between 4th January to 19th February
                                                                                                                                                                           industry leading advice and networking opportunities                                    ACS produces several reports throughout the year, looking in
2021. The data in this report excludes store managers and refers to a sample           Online and home delivery (page 12)                                                  for retailers and suppliers.                                                            detail at different aspects of the convenience store sector, all
of 5,227 colleagues. Store managers have been excluded from the analysis to            •	Social media – Data obtained from independent and multiple retailer
                                                                                                                                                                                                                                                                   of which are available free to members.
be consistent with previous reports. For more Colleague Survey results please             surveys. Results for independents and multiples were collated and
visit the ACS website or email rosie.wiggins@acs.org.uk                                   combined according to their proportion of stores in the market, to               Our membership includes a diverse range of convenience store
                                                                                          determine overall results for the sector. Where specified, data reflects an      retailers, from stand-alone family run independent stores to                            We can also provide further breakdowns of the Local
Community Shops – Plunkett Foundation                                                     average of 2020 and 2021 results, as two-year averages to account for any        symbol groups and multiple convenience stores. These retailers                          Shop Report data to members. Please contact Rosie Wiggins
The number of community owned shops is obtained from the Plunkett                         variations in sampling and methodology changes.
Foundation database.                                                                   •	Google trends – Data refers to the search ‘local shops’ in the UK. Trend data    operate in neighbourhoods, villages, on petrol forecourts and in                        at rosie.wiggins@acs.org.uk for further details.
                                                                                          was sourced in August 2021.                                                      city centres.
All other data on community shops is obtained from the Plunkett Foundation             •	Delivery – Data was obtained from the Voice of Local Shops survey                                                                                                        For more information about ACS, visit our website.
report ‘Community Shops 2021’. The report is based on statutory data sourced              conducted May 2021, and refers to independent retailers only
from the Financial Conduct Authority and Companies House; electronic                      (including unaffiliated and symbol group independents).                          ACS’ core purpose is to lobby Government on the issues that
questionnaires and follow up telephone surveys; together with information held                                                                                             make a difference to local shops.
by Plunkett on every community shop.

                                                                                  22                                                                                                                                                                          23                                                                 September 2021
acs.org.uk • @ACS_Localshops
Contacts
For more details on this report, contact
Rosie Wiggins via email at rosie.wiggins@acs.org.uk

For more details on ACS: Visit: www.acs.org.uk Call: 01252 515001
Follow us on Twitter: @ACS_Localshops

#LocalShopReport
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