Comment
Has the market bottomed out – finally?
It’s always dangerous to read too much into a single set of statistics that happen to suit the argument you want to make, even if organisations like the Scottish Government and ASH make a living out of it – but when several sets of numbers start to point to the same thing, maybe it is indeed time to sit up and take notice. That’s what was going through my mind in the last week or so when the latest Grocery Retail Structure figures were released and showed that the number of c-stores in the UK grew last year for the first time in a decade.
A few days later the CBI published its quarterly Distributive Trades Survey showing that retail sales volumes rose strongly in May compared to a year ago, and sentiment regarding the business situation for the next quarter has improved significantly. Granted, the driving forces behind the surge in convenience store numbers have been the fascias and the major multiples who have continued their encroachment into smaller format retailing. But the fact remains that convenience retailing is clearly where it’s at and I’ve always strongly believed that, despite the strength (and wealth) of Tesco, Sainsbury’s and the like, a good genuine local retailer will always beat a soulless, heartless Tesco Express or Sainsbury’s Local.
Symbol store membership now tops 16,400 across Britain for the first time with Booker leading the way on 2,700 stores. Spar UK isn’t too far behind on 2,460 – and the feeding frenzy that has been going on among the fascia groups of late suggests that this trend isn’t likely to change any time soon.
Unfortunately all this growth has to come at a cost – and that cost is the 4.5% decline in unaffiliated independents. It’s difficult to see a situation where that particular decline will be reversed unless something dramatic changes in the future.
The numbers provide food for thought though, and remind us all that consumers have never had higher expectations of a c-store than they do now – so bear that in mind every day and you won’t go far wrong. Having said that, I’ve just spent three weeks visiting dozens of Scottish c-stores judging the SLR Awards and standards were quite simply fantastic. When the good times do return, this sector is going to be in the perfect position to capitalise.
EDITORIAL
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© 55 North Ltd. 2012
ANTONY BEGLEY, EDITOR
12
SLR | JUNE 2012
WWW.55NORTH.COM
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