The Welsh Local Shop Report 2022 - The Association of ...

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The Welsh Local Shop Report 2022 - The Association of ...
The Welsh Local Shop Report 2022
A report by the Association of Convenience Stores
#LSRWales
Introduction                                                                                    Who we are

          47,079                                                       2,975                       88%
   There                                                                                                                                 * of convenience                                                                                    have been in
                                                                                                                                                                                                            25%
   are
                                                                                                                                           stores in Wales are                                                                               the business for
                                                                                                                                           independently owned                                                                               more than 25 years

          convenience stores                                            of these stores            The people who own and run stores are:
          in mainland UK                                                are in Wales
                                                                                                                                                                          22%                          43%                                           White
                                                                                                                                                                                                                                                                          80%
   Wales has more shops per head than any other part of mainland UK                                              21%                                                                                   Female                                        British

                                                                                                                                  18%                18%                                                                                             Asian
                                                                                                     14%                                                                                                                                             or Asian
                                                                                                                                                                                                                                                     British
                                                                                                                                                                                                                                                                          19%
       There are almost 3,000 convenience stores
                                                          Why we are important
       in Wales, providing essential groceries and
       services to their customers, employing
                                                                                                                                                                                              57% Male                                               Other                1%
                                                          £2.7bn total sales
       over 25,000 people with local, flexible
       jobs, and making a positive difference in                                                         30      31 – 40           41 – 50            51 – 60             60+
                                                                                                      or under
       their communities. The Welsh Local Shop                                                                                                                                           Source: ACS/Lumina Intelligence 2020                     Source: ACS/Lumina Intelligence 2021.
                                                                                                                                                                                                                                                                 *
                                                                                                                                                                                                                                                                   Source: WRBM 2021
       Report highlights the importance of these
       stores and acts as a snapshot of the work                                                   Location

                                                          £619m in GVA
       that retailers and colleagues have done
       throughout the last year. The information in
       this report is gathered from our own primary
       research with independent and symbol                                                        63%
                                                                                                   Rural
                                                                                                                                          SHOP
                                                                                                                                                                  22%
                                                                                                                                                                  Suburban
                                                                                                                                                                                                  SHOP       HAIRDRESSER
                                                                                                                                                                                                                                  16%
                                                                                                                                                                                                                                  Urban
                                                                                                                                                                                                                                                           COFFEE SHOP    SHOP      FASHION

       group retailers, in addition to multiple and
       cooperative businesses, and support from

                                                          25,000+ jobs
                                                                                                                                                                                                                                                                Source: Source: WRBM 2021

       respected secondary sources. For more                                                                         Neighbouring businesses
       information about the wider UK convenience                                                                   Isolated store
       sector, please see ACS’ Local Shop Report                                                    37%             No other retail/service businesses close by.

       2021 which is available at ACS.org.uk                                                                                                                                                           LOCAL SHOP

                                                                                                                    Located on a small parade
   Investment                                                                                       36%             Up to five retail/service businesses close by.

                                         £35m
                                                                                                                                                                                                      LOCAL SHOP    HAIRDRESSER   BUTCHER

   Over the last year,
   convenience stores in                                                     in their businesses
                                                                                                                    Located on a larger parade or a high street
   Wales have invested over                                                                          12%            Up to 10 retail/service businesses close by.

  67%                          of                                 Refrigeration
                                                                                                                                                                           PUB   BANK   COFFEE SHOP   LOCAL SHOP      FASHION     PHARMACY    RESTAURANT

                                     Independents

                                                                  is the most common                                Located on a main high street or within a city centre
                                                                  area of investment                 15%            More than 10 retail/service businesses close by.

   fund investments from own reserves                             (independents only)
                                                                                                                                                     CHARITY   TAKEAWAY    PUB   BANK   COFFEE SHOP   LOCAL SHOP       FASHION     PHARMACY   RESTAURANT    HAIRDRESSER   BETTING   SPORTS

acs.org.uk • @ACS_Localshops                          2                                            Source: ACS/Lumina Intelligence 2021 (independents only)                        3                                                                                        January 2022
How we operate                                                                                                                                      Our colleagues

                                                                                                                                                                                                25,000 jobs
Sales space (Independents only)                                                    Average opening hours
                                                                                                                                                    Convenience stores in
                                                                                                                                                    Wales provide over
         54%                                                                       Average opening hours
                                    37%
                                                                                   13.3 12
                                                                                                                                                                                                                                                            Source: ACS/Lumina Intelligence 2021

                                                                                                                                                    Colleagues in the convenience sector are:
                                34% Own                7%Rent
                                                     66%                               Monday to                           Sunday
                                                                                        Saturday

                                                                                                                                                                                                                             70% 30%
       1-999 sq. ft.           1,000-1,999 sq. ft.   2,000-3,000 sq. ft.

Premises ownership                                                                                                                                                                                                                                Source: ACS Colleague Survey 2021 (UK average)

 Independents                                                                                                                                                          21%                                                                              65%                       14%
                                                                                                                                                            16-24 years old                                                                      25-60 years old                  Over 60
                                                                           75% Own                             25% Rent                                                                                                                                      Source: ACS/Lumina Intelligence 2021

                                                                                                                                                    Hours worked
How independent retailers source their products
                                                                                                                                                                                           36%                                             42%                        17% 6%
                   42%
              I get all of my products
                                                               39%
                                                             I get some products
                                                                                                                     19%
                                                                                                              I get all of my products                                                               0-16                                     17-30                      31-40 40+
                      delivered                            delivered and some from                             from a cash and carry                                                                 hours                                       hours                     hours hours
                                                               a cash and carry
                                                                                                                                                                                                                                                             Source: ACS/Lumina Intelligence 2021

                                                                                                                                                    Length of employment

                                                                                                                                                            18%                                         46%                        16%                                   20%
                14%                                           18%                                                            7%
             Majority of                                   Roughly the                                                Majority from a
         products delivered                               same amount                                                 cash and carry

                                                                                                                                                     Less than one year                              One to five years         Six to 10 years                     More than 10 years
                                                                                                                                                                                                                                                              Source: ACS Colleague Survey 2021

Employment of family members
                                                                                                                                                    Future plans

 49%              of retailers employ at least
                  one family member                       51%               of retailers employ
                                                                            no family members                                                       39%          Same / similar role with my current employer                16%   A job outside of the sector

                                                                                                                                                    14%                                                                      11%
 14%
                                                                                                                                                                 More senior role with my current employer                         Not working/retired
                   of retailers employ family only
                                                                                                                                                    8%           Similar / more senior role with a different
                                                                                                                                                                 employer in the same industry                               11%   Other

acs.org.uk • @ACS_Localshops                             4       All data on this page – source: ACS/Lumina Intelligence 2021 (independents only)   Source: ACS Colleague Survey 2021 (UK average)                       5                                                       January 2022
The services and technology we offer                                                                                                                    Who we serve

                                                                                                                                                           83%
   The percentage of stores in the Welsh convenience sector that provide each service is as follows:                                                                                              of independent retailers in
                                    2
                                              32
                                                                                                                                                                                                  Wales engaged in some form of
                                                                                                                                                                                                  community activity in the past year
                                         7
                               18
                                             25
                                        46

          82%                   80%                        77%                      70%                   48%                        32%                   Most positive impact on the local area
       Mobile phone                 Lottery               Bill payment             Cash back         Free to use cash                Parcel
         top-up                                              services                                   machines                collection point

          30%                   26%                        26%                      25%                   24%                        22%                                               1. Convenience stores       2. Post offices        3. Pharmacies
         Post office           Charged cash              Local grocery              Click and            Click and                 Home news
                                 machine                   delivery               collect service     collect services              delivery
                                                                                                       for groceries
                                                                                                                                                           Top three most essential services
   Food service

        48%               25%                       23%                23%                  20%                 16%                    16%
      Customer            In-store                    Food             Hot food             Microwave          Food-to-go             Serve over
    operated coffee        bakery                  preparation        counter or          for customers        concession               coffee
       machine                                     area/kitchen        cabinet                                                         machine
                                                                                                                                                                                            1. Pharmacies          2. Post offices    3. Convenience stores
                                                                                                                                                                                                                                                    Source: ACS Community Barometer 2021

   Technology                                                                                                                                              Customers

                                                                                                                                                                                                                     47% drive to store...
   The percentage of stores in the Welsh convenience                                     Payment methods
   sector that have each of the following are:                                                                                                             The average customer in                                                   of shoppers in Wales
                                                                  Mobile marketing
                                                                                           100%                     Cash                                   Wales visits their local store
                66%                                    12%

                                                                                                                                                                         2.4
                         EPoS                                     platform/

                                                                                                                                                                                                                     versus 42% UK average
                                                                  loyalty scheme
                                                                                                           DEBIT

                                                                                            95%                     Debit card
                                                                                                                                                                                                      times
                34%                                    10%
                                                                                                                                                                                                                                                                      51
                         Store                                    Digital shelf

                                                                                                                                                                                                                     Average age is:
                         website                                  edge labels                                                                                                                         per week
                                                                                                          CREDIT

                                                                                            93%                     Credit card
                                                                  Power outlets/USB
                27%      In-store
                         Wi-Fi                           6%       ports for charging                                                                                                              The average
                                                                  customer devices
                                                                                            82%                     Contactless payment                                                           basket size is     The average spend is

                                                                                                                                                                                                  3.3
                                                                                                                                                                                                                                                          Ten
                                                                                                                                                                                                                                                          Pounds
                         Digital
                22%                                      5%       Self-service

                                                                                                                                                                                                                                     £10.91
     SAVE 30%
                         advertising
                         screens
                                                                  checkouts
                                                                                            51%                     Mobile payment

                                                                                         Social media
                                                                                                                                                                                                  items
                       85%                             of stores
                                                       have CCTV
                                                                                            41%      26%           19%          17%           11%

                                                                                                                                                                                                                   54% 46%
                                                                                          Facebook   Twitter    Instagram WhatsApp           TikTok

acs.org.uk • @ACS_Localshops                                                6                                  Source: ACS/Lumina Intelligence 2020-2021   Source: Lumina Intelligence CTP 2021                           7                                              January 2022
Methodology

ACS Welsh Shop Report draws on data from the ACS Local Shop                  Community Barometer
Report 2021.                                                                 Populus surveyed a nationally representative online sample of 1,075 UK
                                                                             adults aged 18+, between 25th and 27th June 2021. Respondents were
New primary data for the Local Shop Report was undertaken by ACS in          surveyed using a questionnaire designed by ACS.
the form of two surveys:
                                                                             For more Community Barometer results please visit the ACS website or
1. Independent Retailer Survey – A sample of 2,420 independently             email rosie.wiggins@acs.org.uk
owned convenience store businesses in the UK. ACS commissioned
Lumina Intelligence to aid in the design and delivery of the survey.         ACS Voice of Local Shops
The survey was carried out over the phone by BCC Marketing between           A quarterly telephone survey with a sample of 1,210 independent
31st May and 23rd July 2021. The telephone survey gathered responses         retailers, covering the nine regions of England, along with Wales and
from unaffiliated independent convenience stores, independent forecourt      Scotland. Welsh data refers specifically to 69 independent retailers
stores and independent stores that are part of a central buying or           in Wales. The sample consists of unaffiliated, symbol group and
marketing group (known as ‘symbol’ groups). These are represented in         forecourt independents which are represented in the survey in the same
the survey in the same proportion as they are represented in the market.     proportion as they are in the market. Lumina Intelligence aid in the
The survey covers the nine regions of England, along with Wales and          design and delivery of the survey.
Scotland. The data in the report refers specifically to 186 independent
respondents in Wales.                                                        ACS Investment Tracker – Data obtained in the form of two surveys:
                                                                             ACS Voice of Local Shops survey – Questions are asked relating to the
2. Multiple Retailer Survey – ACS conducted an online/paper survey           amount retailers have invested over the past quarter, what they have
of its multiple chain members. This survey was based on the questions        invested in and how they have funded their investments.
asked in the Independent Retailer Survey, where relevant, to ensure
consistency and accuracy of results. This survey returned results relating   Multiples Investment Tracker survey – A sample of over 2,000 multiple
to a sample of 6,200 stores.                                                 stores in the UK. Questions in the Multiple Investment Tracker survey
                                                                             are based on the questions asked in the Voice of Local Shops survey,
The results of these two surveys have been collated and figures for          where relevant, to ensure consistency of results.
independents and multiples have been combined according to the
proportion of stores in the market, in order to determine overall results    The results of these two surveys are collated and combined according to
for the sector.                                                              the proportion of independent and multiple stores in the sector. The ACS
                                                                             Investment Tracker is completed every quarter and an average has been
William Reed Business Media (WRBM) – Store numbers and sector data           taken across the latest four quarters (February 2021 to November 2021).
WRBM continually updates data through re-registering customers
thereby adding changed recipients, closures and new stores. This is          ACS Colleague Survey
through postal, telephone research, online delivery and events, plus the     An online and paper survey with a sample of 7,403 staff working
ongoing work of the editorial teams on its brands Convenience Store,         within the convenience sector. The fieldwork was conducted between
Forecourt Trader and The Grocer.                                             4th January to 19th February 2021. The data in this report excludes store
                                                                             managers and refers to a sample of 251 colleagues. Store managers
Convenience Tracking Programme 2021 – Lumina Intelligence                    have been excluded from the analysis to be consistent with previous
This programme is a survey of over 20,000 convenience shoppers               reports. For more Colleague Survey results please visit the ACS website
conducted at the ‘moment of truth’ in store.                                 or email rosie.wiggins@acs.org.uk

Acknowledgements
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:

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

#LSRWales
© ACS 2022. Design & illustration by www.fluiddesignstudio.com
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