Talking Retail Grocery and product news for independent retailers
With a number of companies requiring employees to work from home, many of us are spending more time around our neighbourhoods.
Post-lockdown, local and independent shops are benefiting from increased footfall.
Recent insight from market data analyst Kantar reveals a 69% increase in consumer spending in grocery and convenience stores from March to June this year.
It is not just the grocery sector benefiting. As fewer people commute to offices, they are taking more time to explore their local areas and high streets. They are discovering nearby boutiques, butchers and homeware stores that offer a more personalised service and high-quality goods.
Also, customers may perceive an additional sense of safety and psychological security when shopping locally. With localised outbreaks still occurring, there seems to be a reluctance to travel long distances to shop.
Many small to medium-sized enterprises (SMEs) are adapting well to this new environment. Elavon, a payments company and parent company to Opayo, recently commissioned a survey with IPSOS Mori showing that about half (52%) of all UK adults are spending more of their money online since the pandemic.
Additionally, it is not just millennials and Generation Z using e-commerce more – the research found 47% of 55- to 75-year-olds are getting tech-savvy and have spent more online since March 2020.
To succeed in this new environment, SMEs do not necessarily require significant investment or a full e-commerce solution with bells and whistles, such as procurement and inventory systems.
Primarily, they need to focus on getting the customer experience right to encourage loyalty and build trust in a changing retail environment and to grow their businesses.
This should include careful consideration of health and safety measures through visible hand gel dispensers and clear one-way systems.
Additionally, the contactless payment limit increased to £45 in March, which can help to reduce queuing.
It is also beneficial to offer a wide range of payment options through contactless payment terminals or payments over the phone.
Additionally, it is worth thinking practically about how to get the product to the shopper. Many local companies do not require a complicated solution with a plethora of delivery slots.
Some SMEs are offering delivery one day a week, or are using basic e-commerce websites with ‘click and collect’ capabilities.
Businesses can increase their social media presence with locally trending hashtags to generate more footfall from locals, and repeat customer visits by enriching their website and social media channels with more e-commerce functionality.
There are lots of opportunities for local businesses to succeed post-lockdown.
While we may return to our offices eventually, many employers are reconsidering the role of traditional workplaces.
It may be that people go to their office just three times a week or only for in-person meetings.
In the meantime, as we get into the habit of shopping locally, many neighbourhood retailers will benefit.
Article provided by Sean Wilson, managing director of Opayo, a UK and Ireland-based payments firm
