Over 4 in 10 consumers to continue to shop more locally, finds new research  

The growing custom at local stores induced by the Covid-19 pandemic is expected to continue into 2021, finds a new report by Lumina Intelligence.

While over half of the customers (53%) have shopped locally more in the last year, 42 per cent said they will continue to shop locally in the future, according to the Future of Convenience Report 2021 launched this week by the market researcher.

More importantly, three fourths are now aware about the role of local stores, with 78 per cent saying it’s either ‘important’ or ‘very important’ to support local suppliers and retailers and 74 per cent, to support businesses who give back to the community.

“Disrupted global supply chains and trade restrictions for businesses made local buying both a necessity and desire in 2020. This behaviour is expected to continue, with most consumers defining “local” as “made in the UK” – a trend that will be boosted by Brexit,” commented Alice Dolling, senior insight manager at Lumina Intelligence.

Dolling added that convenience stores are “perfectly positioned” to capitalise on the demand for shopping locally.

“Community involvement is pivotal in building loyalty and awareness. In fact, positive community involvement directly correlates with likelihood to recommend a store,” she said.

The report also highlights the opportunity for convenience stores in ‘On Demand Convenience’, sparked by the consumer shift to online.

Nearly half of the customers (48%) said they would use convenience store delivery, but 38 per cent of them are not aware of this service at their local store, the report found. Over a quarter of them (27%) said they would replace a takeaway with delivery from a convenience store.

“Nearly one-in-five shoppers changed their primary method of grocery shopping to online, highlighting the opportunity available,” Dolling said.

“As demand increases, convenience stores have a great opportunity to drive greater basket spend and expand the potential catchment area of their store by offering delivery. Not only that, delivery provides another avenue to compete with foodservice operators in the ‘takeaway’ market.”

The recessionary pressures are keenly felt by shoppers with 46 per cent of them either ‘agree’ or ‘strongly agree’ that they are trying to reduce their food and drink spend. In addition, two thirds are more careful with what they spend money on than before lockdown began.

The report recommends local stores to expect savvier shopping behaviour in the coming period, as 61 per cent of the consumers  are ‘very’ or ‘extremely’ aware of product prices in convenience stores, and 28 per cent purchase own label. Some 43 per cent said they are willing to join a loyalty scheme if it offered personalised offers.

“In April 2020, 37 per cent of consumers said they were visiting their local convenience store more often, driven by government advice to ‘stay local’. The big challenge for retailers in 2021 will be to retain these shoppers,” Dolling noted.

“With the UK entering its first recession in 11 years, consumers will be more aware of their spending and will be engaging in price comparisons. Retailers and suppliers will inevitably have to be reactive with promotions, but also offer loyalty schemes to gain and retain shopper custom.”