What’s in store for 2024? | Big story: Retail predictions (part 2)

Threats to the sector range from crime to the ongoing cost-of-living crisis, from rising business costs to plans for a ban on disposable vapes.

Opportunities, on the other hand, include the growing appetite for food-on-the-move, embracing new technology, and this summer’s Euros and Olympic Games.

But what steps should store owners be taking in order to capitalise on these opportunities?

John Heagney, founding partner of retail consultancy The C-Store Collective, says: “It is going to be vital to be more strategic, ensuring that they run their business, rather than the business running them.

“In every area, efficiency needs to be considered: can a job be done better and at a lower cost?

“This could be down to cash management where automated systems can deliver massive efficiency and cost savings, automating processes, auto-replenishment of stock, automated payroll control and processing, getting the best energy deals, the lowest debit and credit card processing rates, minimising waste through smart apps and then very carefully analysing monthly management accounts (you would be amazed at how many retailers don’t have these) to ensure that business efficiencies are driving sales and profit.

“Regular digital self-auditing of stores is hugely important to ensure every customer gets the best possible in-store experience. This also proves due diligence, especially in areas such as vape as laws tighten. These audits will demonstrate that processes are in place to protect shoppers and staff.

“Technology must always be at the forefront. We are attacking retail crime and theft through shopper tracking using in-store cameras.

“We already use a system that can integrate into existing CCTV feeds and alert through digital headsets when shelf-clear, sweethearting, and improper self-scanning is detected, along with a host of other very useful functions.

“The use of this technology will become widespread and be a game-changer.”

Muntazir Dipoti, national president at the Federation of Independent Retailers, advises: “Make sure you understand your competition. Go out and visit other stores to see what they are doing well that you could introduce into your own businesses.

“It may be as simple as your pricing strategy, so check that you aren’t losing margin by being too cheap, or alternatively sales, by being too expensive.

“I would also urge fellow independent retailers to embrace technology. There is a new generation of tech-savvy retailers emerging and, as a result, the retail sector is becoming more exciting. Don’t lose out.”

Mike Fitton, head of franchise for Southern Co-op Welcome, says retailers need to “plan and plan” in order to survive and thrive during 2024.

“Don’t let your head be buried in the sand,” he says. “Look at all aspects of your business.

“So, your offer. Do you have a good own-label range? Are you making the most of your promotions, are they displayed in the right locations?

“Are you sure your fresh food looks appealing and fresh? Look again at your local area – are you supplying everything you could be?

“Costs. Every time we have refitted a Welcome store with new refrigeration, running costs have decreased significantly.

“Make sure you are looking at all the new technology out there that could help you redirect your in-store labour to improve customer service and in-store availability

“Talk to your accountant. I am still surprised how many retailers aren’t aware of the current tax allowances available around capital and technology spends.

“Service. Offer what your competitors don’t. A smile and a friendly hello; simple, but it means a lot.”

“And with more legislation on vape sales in the pipeline, retailers should make sure Challenge 25 training is top of their list to prevent negative press on under-age selling.”

Environmental issues are a further area worthy of consideration.

Dawood Pervez, managing director at Bestway Wholesale, says: “Environmental concerns and the growing emphasis on sustainability and eco-friendly practices might pressure convenience stores to reduce single-use plastics, adopt more environmentally friendly packaging, and source products from sustainable suppliers.”

He also suggests retailers make themselves stand out from the crowd by offering, for example, locally sourced products – something the multiples struggle to replicate.

“Stores can offer unique products that cater to specific customer needs, such as offering locally sourced or artisanal items.

“Being smaller and more agile, independent convenience stores can often respond more quickly to changing market trends and customer preferences and adapt their offerings accordingly.”

He also advises:

• Establishing a strong presence within the local community through sponsorships, events, or partnerships.
• Leveraging online platforms for sales, implementing user-friendly websites or apps, and embracing digital marketing.
• Focusing on sustainability by meeting the increasing demand for sustainable products and practices to attract environmentally conscious customers.

Back to part 1