How Convenience Stores Manage to Survive Changes in Retail
Anywhere you go, down the street or around the corner, there is usually a convenience store to serve you. Making up only a fifth of UK’s grocery sector, it is a wonder how neighbourhood retailers like these maintain their niche in the market. With the British economy undergoing a major upheaval, convenience stores must be among the first to feel those changes. The question is: How do they manage to survive?
A day in the life of a shopkeeper
Many of these shopkeepers have been around for years, and most locals know them by their first names. Early-risers who are already in the market before 4 A.M. three times a week, they get first pick of the freshest of meat, seafood, fruit, and vegetable. After a long day and a gruelling 14 hours of work, the shop closes only to resume the same routine.
So far, why haven’t these retailers closed shop for good? Aside from their most loyal customers, what keeps them open? We can only guess how tough it is to compete with supermarkets and on-line sites, and yet they manage to hold their own.
Their ability to cope with the times
Bigger convenience store chains like McColl’s continue to run a total of more than a thousand stores and newsstands. However, a majority of convenience stores are owned by independent entrepreneurs – some of them from way back in the 70’s.
As members of the Association of Convenience Stores (ACS), many of these store owners are freeholders, giving them stability over their own lease. Three-fourths of what they invest in the business are out of pocket, and so they have to be smart about cost. From running a busy store and with hardly any time to go to the bank, these neighbourhood shops have learnt to be self-sufficient.
Their strategy requires them to be quick to adapt to change. This means reacting to the rise and fall of demand and supply, which could change from day to day. (Yes, it even includes working on a holiday.) In operating a smaller organisational unit, one can afford to be less-structured and to act decisively!
The challenges that lie ahead
With the rise of mergers and acquisitions like Tesco Booker and Co-op Nisa, the landscape is changing. It remains to be seen whether these changes could lower wholesale prices and benefit those in retail.
It is also a new generation of sons and daughters to inherit the business, some of whom choose a different path. Fortunately, there is always someone willing to invest and take over. The future looks bright in rural areas where a pit stop is needed for pickups and deliveries. With that being said, it looks like it is business as usual and your friendly convenience store is not going anywhere; it is here to stay.