Convenience stores were one of the few UK business success stories over the last year, with many playing a key role in supplying local communities around the UK.
Of course, government advice to stay local to limit the spread of COVID-19 saw consumers use their local convenience stores more often than usual.
According to Statista, non-affiliated independent convenience stores in the UK accounted for 40% of market share in 2020.
Now there’s light at the end of the tunnel as far as the easing of restrictions is concerned, will this trend continue for the rest of 2021/22? We think so.
Customers will probably continue the habit of wearing face masks for a while yet, and home-working makes nipping to the local shop attractive.
Given how busy supermarkets usually are, the humble convenience store should continue to buck the trend for the rest of the year.
But how does your corner shop stay competitive beyond that?
Convenience stores vs. supermarkets
With independent convenience stores performing so well over the last year, there’s clear evidence of a cultural shift away from supermarkets.
While that’s great news for community retailers, it’s not gone unnoticed by the UK’s major supermarkets. This suggests competition will hot up.
Amazon is reportedly preparing to trial a new grocery proposal ahead of a potential UK launch, and this could drive grocery prices down.
Other supermarkets, such as Tesco, Sainsbury’s and Co-op, are also trying to muscle in on the convenience stores’ market share.
What can corner shop owners do?
For starters, you can come to Diamond Accounts and let us review your business plan for the rest of 2021/22.
We can review your business’s performance in the first quarter and use those figures to inform a cashflow forecast for the rest of the tax year.
This will help you cover all bases for potential scenarios that lie ahead, while enabling you to set competitive prices for the goods you stock.
When a customer walks into your corner shop, they do so in the knowledge it will cost them a little more to buy products than in a supermarket.
They are also less likely to spend a long time in your convenience store, mainly because they have a clear idea of the product they’re after.
Knowing that gives you a degree of leverage to charge more for the goods you stock in your convenience store.
Get in touch
Whether you own a corner shop or a franchise, we love to work with commercial retailers. We offer a wide range of specialist accountancy services and business support to small and medium-sized retailers.
If you’re VAT-registered and reluctant to use digital accounting software, we’ll even collect any paperwork from your shop before every quarter to ensure total compliance.
Talk to us today for smart advice for commercial retailers.