Convenience sector sales cross £44 billion; provides 412k jobs

The convenience sector has generated £44.7 billion in sales over the last year, the 2020 Local Shop Report by the Association of Convenience Stores (ACS) has revealed.

The annual report highlights the sector’s contribution to the UK economy, with over £10.1 billion in GVA (gross value added) and providing jobs for around 412,000 people across the country.

The £44.7 billion sales for the year to March 2020 represents over one fifth of the total grocery market, the report noted.

The 46,955 stores that make up the sector have invested over £585 million in improving their businesses and introducing new services for customers in the last year.

One third of the workforce in the sector have child care commitments and a similar number (37%) care for other family members. For 32 per cent, the job is the only source of income for the household, and for another 17 per cent, it is the major source of income in the family.

“The convenience sector’s role as a substantial job creator cannot be overstated,” commented James Lowman, ACS chief executive.

“Retailers provide secure, local, flexible jobs that fit alongside other commitments like childcare and helping relatives. This is why job satisfaction in the sector is high, and more than half of the colleagues working in stores see themselves staying in a similar role in five years’ time. Our role as an employer has never been more important.”

The report also includes insights about the convenience sector’s experience of lockdown, with two thirds of retailers reporting an increase in sales over the lockdown period.

More than half of retailers now provide ‘card not present’ transactions, making it easier for volunteers to shop for those who are vulnerable or isolating. The sector also provides over 600,000 home deliveries a week to local people.

Lowman said: “When the UK went into lockdown in March, millions of people turned to their local shops to help keep them going with essential groceries and services. Retailers have done a stellar job of adapting and developing their businesses to keep up with demand, with no greater example than the incredible growth in home deliveries.

“We anticipate continued growth in the convenience sector in the coming months and years, as both new and existing customers keep coming back to their local shop.”