report 2021 - acs | the association of convenience stores...coffee shop/café 4 pub/bar f...

A report by the Association of Convenience Stores

The Rural Shop Report 2021

#RuralShopReport

Neighbouring businesses

Investment

investedOver the last year

rural convenience stores have around £197m

in their businesses

Achieved£16bn in sales

Contributed £3.7bn

in GVA

Source: ACS Investment Tracker 2020

126,500jobs

Providedaround

Over the last year, rural convenience stores have:

convenience stores in mainland UK

46,955 Thereare

of these stores are rural

17,175 » INTRODUCTION

There are over 17,000 rural shops in the UK, the majority of which operate in isolation with no other business or service provider nearby. Rural shops are often the only place where thousands of people can get access to groceries and services locally, cementing themselves as a crucial part of their communities. Rural shops are also significant contributors to the economy, investing almost £200m despite continuing to face the unique challenges of insufficient mobile coverage and poor broadband connectivity. The information featured in this report is gathered from our own primary research, as well as data kindly supplied by other organisations such as Lumina Intelligence, William Reed and the Plunkett Foundation. While this report is intended to look at the normal conditions of a store in 2020/21, some of the figures have been influenced by Covid-19. Detailed information about the methodology and calculations in the report can be found on page 16 and online at ACS.org.uk/research

Source: ACS/Lumina 2020 (independents only) FEBRUARY 20213acs.org.uk • @ACS_Localshops 2

43%Female

57%Male

of rural store owners have been in the business for

more than 25 years

White British

Asian or Asian British

73%

26%

Other 1%60+41 – 5031 – 4030or under

13%

19%

26%25%

51 – 60

17%

The people who own and run rural stores are:

20%

Isolated store No other retail/service businesses close by54%

LOCAL SHOP

Located on a small parade Up to five retail/service businesses close by39%LOCAL SHOP HAIRDRESSER BUTCHER

Located on a larger parade or village centre More than five retail/service businesses close by

PUB BANK COFFEE SHOP LOCAL SHOP FASHION PHARMACY RESTAURANT

7%

of rural convenience storesare independently owned 79% *

Source: ACS/Lumina 2020. *Source: WRBM 2020

» WHO WE ARE

Source: ACS Investment Tracker 2020

Source: WRBM 2020

There are a higher proportion of rural shops in Wales than in any other part of mainland UK

FEBRUARY 2021acs.org.uk • @ACS_Localshops 4 5

Distance travelled to store

Customers’ relationship with convenience colleagues

48%52%

Walk/on foot Drive Public transport Other

47% 49% 3% 1%

£7.92The average spend is

Purchases

9%

4-5 miles

About a mile

2-3 miles

More than5 miles

Less thana mile

12% 30% 21% 28%

» WHO WE SERVE

100 yards0 1/4 mile 1 mile

More than 1 mile

21%

Less than 1/4 mile

36%

Less than 1 mile

30%

Less than 100 yards

12%

How customers get to store

The average customer visits their local store 4 times per week

Source: Yonder Consulting 2021


If their local shop was no longer there, customers would have to travel…

Average =3.3 miles

UK average = 1.7 miles

How often customers visit

Less than once a week 14%

Every day26%

Most days(5-6 times a week) 16%

Every other day(3-4 times a week) 23%

About once a week(1-2 times a week) 21%

The averagebasket size is

items2.6

13% of customers know the people running and working in their local shop very well

29% of customers know the people running and working in their local shop quite well

37% of customers don’t know the people running and working in their local shop well, but will occasionally have a conversation

30% of customers don’t know the people running and working in their local shop and don’t interact with them

Morning,how are

you today?

Morning,fine thanks

Rural customers are:

Average age is: 51

Source: All data on these pages Lumina CTP 2020 unless stated otherwise


Food-to-goconcession

14%

Parcel collection point

28%

Prescription collections

5%

Energy saving

Most valuable services

» THE SERVICES AND TECHNOLOGY WE OFFER

Rural consumers think that the most valuable services offered in their convenience store are: Cash machine Post office Food-to-go /

coffee

Food service

Source: ACS/Lumina 2019/2020


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

Contactlesspayment89%

Payment methods

Mobilepayment84%

Debit card

Cash

96%

100%

DEBIT

Credit card94%CREDIT

Chiller doors

45%43%

LED lighting Solar panels

32%

Smart meter0%

10%

20%

30%

40%

50%

5%

Source: all data ACS/Lumina 2019/2020 unless where stated. * ACS/Lumina 2019.

27%

43%

74%

30%SAVE 30%

6% Self-service checkouts

In-store Wi-Fi

Store website

Digital advertising screens

EPoS

5% Power outlets/USB ports for charging customer devices

19% Digital shelf edge labels

11% Mobile marketing platform/loyalty scheme

*

Instagram

21%

WhatsApp

10%

TwitterFacebook

33%48%

Social media

of stores have CCTV86%

27

1825

32

46

Mobile phonetop-up

Lottery Cash back

Key cutting services

Car wash

Local grocery delivery

Free to use cash machines

49%

2%

Loyalty card

28%70%

Post office

28%

Jet wash(manual)

6%

Automatic machine car wash

3%

Hand car wash (attended)

1%

80%

Click and collect service

27%

83%

21%Charged cash

machine

21%

Dry cleaning

12%

Home news delivery

21%

Bill paymentservices

75%

Photo booth

4%Recycling bins

9%

Hot food counter or

cabinet

Food preparation area/kitchen

Serve over coffee

machine

Customer operated coffee

machine

Microwave for customers

14%In-store bakery

31% 26% 25% 17%41%

*

*

*

Source: Google Trends

Source: Google Trends

Top five rising searches related to convenience stores

More customers searched for local shops on Google during the start of lockdown (March 23-29) than any other time in the last 12 months.

1. Shop near me

2. Local shop near me

3. Local farm shop

4. Local shop delivery

5. Local parcel shop

ACS Consumer Polling 2019 - conducted by Yonder Consulting


Interacting with customers

1Colleagues they

work with

2

Location

3 Working as part of the community

4

What colleagues like about working in convenience

Travel to work

Length of employment

Contribution to household income

Less than one year One to five years Six to 10 years More than 10 years

18% 15% 22%44%

Future plans

44%

0-16hours

17-30hours

31-40hours

40+hours

7%33% 17%

33%67%

19%16-24years old

68%25-60 years old

12%Over 60

3

are satisfied with their job 74%feel valued by their employer 72%

Hours worked

Colleagues in rural stores are:

126,500Rural stores provide around

jobs in mainland UK

acs.org.uk • @ACS_Localshops Source: ACS Colleague Survey 2020

Source: ACS Colleague Survey 2020



Source: ACS/Lumina 2020






Mode of travel to work

Average travel cost Average travel time

9 minutes £1.21per day

50

10

15

20

253530

40

45

50

55

Walk/on foot Drive Public transport Other

48% 42% 5% 5%

» OUR COLLEAGUES

32%I am the only

income earnerin my household

17%There is more

than one earner, I earn the most

43%There is more than one earner, I do not

earn the most

8%There is more than

one income earner in my household and we earn

roughly the same


Other6

4 Not working/retired

5

6%

6%

9%

The same/similar role with my current employer

A more senior role with my current employer

48%

17%A job outside of the sector

1

2

14%

35%of colleagues care for other family members31%

of colleagues have childcarecommitments

A similar/more senior role with a different employer in the same industry


» OUR COMMUNITIES

Most positive impact on the local area

All data on this page – source: ACS Community Barometer 2020

3

Convenience store Post office Pharmacy

1 2

3

Convenience store Post office Pharmacy

1 2

3

Bank Specialist food shop Post office

1 2

f

FitnessEnergy

City Pawn ShopAmelia Hair & Beauty

7

Petrol station

9

Restaurant

6

Bank

5

Coffee shop/café

4

Pub/bar

f

FitnessEnergy

City Pawn ShopAmelia Hair & Beauty 12

Gym/sports facility

11

Fast food/takeaway

f

FitnessEnergy

City Pawn ShopAmelia Hair & Beauty

14 15

Betting shop

16

PawnbrokerNon-food shop

13

Hairdresser

Top three most essential services

Top three most wanted services

10

Charity shop

8

Specialist food shop

94%success rate of community owned shops

Source: Plunkett Foundation 2020

Community owned shops

372paid jobs created700

Providing essential services to around Over Around

remote, ruralcommunities1,300

volunteer positions created

7,000

Community shops generated a combined turnover of over

£55m

There are

community owned shops trading in the UK

There are over

youngpeople

that benefit from work experience or volunteering opportunities in community owned shops

1,000

In-store


Indoor seating areas 10%

Outdoor seating areas 9%

Customer toilets 15%

Community noticeboards 53%

of independent retailers engaged in some form of community activity in the past year79%

Source: ACS VOLS 2020

Providing sponsorship to a local sports team or other community activity

23%

Taking part in community, council or local business association meeting or project

16%Donating to a food bank

42%

69%Collecting money for a national or local charity

Litter picking or other local environmental campaigns

16%

Providing funding, or in kind support, to a community event

24%

Community activity


of rural consumers feel safer in their local shop than in a larger supermarket21%

LOCAL SHOP

acs.org.uk • @ACS_Localshops

» HOW WE OPERATE» OUR COMMUNITIES

operate one store

92% ✶

✶

✶

✶

✶

✶✶

✶

✶✶

✶✶

of independents

Opening hours

Opening Closing

5am and earlier6am7am8am9am and later

4% 26%41%17%13%

5pm and earlier6pm 7pm8pm9pm10pm11pm and later

18%9%9%14%12%20%18%

4%Monday to Saturday

Sunday

Average opening hours

13.5 12.5Closed on Sunday

7%are open

Typical convenience stores are open

7am until 10pm

Multiples

19% 32% 49%

Independents

61% 32% 7%

1-999 sq. ft. 1,000-1,999 sq. ft. 2,000-3,000 sq. ft.

Sales space



Source: ACS/Lumina 2020 - multiples based on UK average

Services and home delivery

Local shops are now providing over

home deliveries a week in their communities

600,000 56%of stores offer ‘card not present’ transactions, helping volunteers to shop for vulnerable people locally

Shopping in convenience stores over the last year

I have used a no contact click and collect service from my local convenience store for the first time in the last year:

I have used a home delivery service from my local convenience store for the first time in the last year:

I have used a wider range of services in my local convenience store than this time last year:

I have purchased a wider range of products from my local convenience store than this time last year:

I have visited my local convenience store more than this time last year:

0% 5% 10% 15% 20% 25% 30% 35% 40%

37%

25%

11%

6%

5%

Source: ACS Covid-19 Impact Report April-May 2020



1 in 5 rural consumers depend on their local shop more now than a year ago

More than half of rural consumers (53%) feel their local shop is important to their community / local area

FEBRUARY 2021acs.org.uk • @ACS_Localshops 14 15acs.org.uk • @ACS_Localshops

» HOW WE OPERATE

Premises ownership

36% Rent64% Own

69% Rent31% Own

36% Rent64% Own

69% Rent31% Own

7%Majority ofproductsdelivered

I get all of my productsfrom a cash and carry

I get all of my productsdelivered

I get some productsdelivered and some from

a cash and carry

30%45% 25%

4%Majority from acash and carry

14%Roughly the

same amount

13%70

of shop owners work

more than

hours per week

take no holiday per year

24%

Independents

Multiples

How independent retailers source their products

0% 5% 10% 15% 20% 25% 30%

20%26 years or more

7%21 to 25

13%16 to 20

15%11 to 15

18%Six to 10

28%Five years or less

Business origin

73%27% inherited family business

started business

Time in business

Employment of family members

48% of retailers employ at least one family member

of retailers employno family members52%

18% of retailers employ family only

of businesses are owned by family partnerships44%

Accessibility in stores

The percentage of convenience stores that have:

Hearingaid loops

26%Wide aislesParking

49%Wheelchair

access

63% 47%

Source: all data ACS/Lumina 2020 * ACS/Lumina 2019. ** ACS/Lumina 2018. *** ACS/Lumina 2019/2020

*** *** *** ***

*

**

#RuralShopReport© ACS 2021. Design & illustration by www.fluiddesignstudio.com

This report would not have been possible without the support of a number of industry and research organisations that have helped by providing data. These sources are referenced alongside the relevant sections of the report, and those organisations are:

Acknowledgements

ACS Rural Shop Report draws on data from the ACS Local Shop Report 2020.

New primary data for the Local Shop Report was undertaken by ACS in the form of two surveys:

1. Independent Retailer Survey – A sample of 2,431 independently owned convenience store businesses in the UK. ACS commissioned Lumina Intelligence to aid in the design and delivery of the survey. The survey was carried out over the phone by BCC Marketing between 13th June and 29th July 2020. The telephone survey gathered responses from unaffiliated independent convenience stores, independent forecourt stores and independent stores that are part of a central buying or marketing group (known as ‘symbol’ groups). These are represented in the survey in the same proportion as they are represented in the market. The survey covers the nine regions of England, along with Wales and Scotland. Rural data refers to a sample of 1,036 respondents who reported that they operate in a ‘rural area’.

2. Multiple Retailer Survey – ACS conducted an online/paper survey of its multiple chain members. This survey was based on the questions asked in the Independent Retailer Survey, where relevant, to ensure consistency and accuracy of results. This survey returned results relating to a sample of 6,700 stores.

The results of these two surveys have been collated and figures for independents and multiples have been combined according to the proportion of stores in the market, in order to determine overall results for the sector. We have developed the way that we calculate the figures for rural shops to better account for the higher proportion of independent retailers in rural areas. This may affect some of the overall numbers, which is a consequence of the recalculation and not necessarily indicative of a trend.

William Reed Business Media (WRBM) – Store numbers and sector dataWRBM continually updates data through re-registering customers thereby adding changed recipients, closures and new stores. This is through postal, telephone research, online delivery and events, plus the ongoing work of the editorial teams on its brands Convenience Store, Forecourt Trader and The Grocer. ACS Economic ReportACS commissioned Retail Economics to provide an economic overview of the convenience sector in 2018. ACS have updated the figures for 2020 based on revised data.

Convenience Tracking Programme 2020 – Lumina Intelligence This programme is a survey of over 20,000 convenience shoppers conducted at the ‘moment of truth’ in-store.

Community BarometerPopulus surveyed a nationally representative online sample of 2,068 UK adults aged 18+, between 10th and 13th January 2020. Respondents were surveyed using a questionnaire designed by ACS. For more Community Barometer results please visit the ACS website or email [email protected]

ACS Voice of Local Shops

A quarterly telephone survey with a sample of 1,210 independent retailers,

covering the nine regions of England, along with Wales and Scotland. The

sample consists of unaffiliated, symbol group and forecourt independents

which are represented in the survey in the same proportion as they are in

the market. Lumina Intelligence aid in the design and delivery of the survey.

ACS Investment Tracker – Data obtained in the form of two surveys:

ACS Voice of Local Shops survey – Questions are asked relating to the

amount retailers have invested over the past quarter, what they have invested

in and how they have funded their investments.

Multiples Investment Tracker survey – A sample of over 3,000 multiple stores

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 consistency of results.

The results of these two surveys are collated and combined according to

the proportion of independent and multiple stores in the sector. The ACS

Investment Tracker is completed every quarter and an average has been

taken across the latest four quarters (February 2020 to November 2020).

ACS Colleague Survey

An online and paper survey with a sample of 2,078 staff working within the

convenience sector. The fieldwork was conducted between 20th January to

24th February 2020. The data in this report excludes store managers and

refers to a sample of 1,173 colleagues. Store managers have been excluded

from the analysis to be consistent with previous reports. For more Colleague

Survey results please visit the ACS website or email [email protected]

Community Shops – Plunkett Foundation

The number of community owned shops is obtained from the Plunkett

Foundation database.

All other data on community shops is obtained from the Plunkett Foundation

report ‘Community Shops 2020’. The report is based on statutory data

sourced from the Financial Conduct Authority and Companies House;

electronic questionnaires and follow up telephone surveys; together with

information held by Plunkett on every community shop.

ACS Consumer Polling 2020 – Conducted by Populus

Populus surveyed a nationally representative online sample of 2,129 UK adults

aged 18+, between 17th and 19th July 2020. Respondents were surveyed using

a questionnaire designed by ACS.

» METHODOLOGY

For more details on this report, contact

Chris Noice via email at [email protected]

For more details on ACS:

Visit: www.acs.org.uk Call: 01252 515001

Follow us on Twitter: @ACS_Localshops

Contacts

report 2021 - acs | the association of convenience stores...coffee shop/café 4 pub/bar f...

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