Local shops for local people
Lockdown has forced consumers to adapt their behaviour. Restrictions on movement have forced whole segments of society to embrace online shopping, but many consumers have also been using more local shops. Local convenience stores in particular have grown in popularity, with data from Kantar showing independents and symbol stores grew their market share by 40% in the 12 weeks to 19th April.
However, is this trend likely to continue?
Here are some of the reasons we believe so:
Convenience has always underpinned consumer shopping habits and this hasn't changed. In April ONS statistics indicated that 49% of the UK workforce was now working from home and many high profile companies including Google have offered employees the opportunity to work from home permanently. Whilst this figure will go down as lockdown lifts, we are likely to see greater flexibility and more employees working from home more frequently which will drive footfall for F&B and convenience shopping.
Social distancing measures and the inability to test products and try on clothing, is also likely to restrict the desire to visit large regional shopping destinations. Most national brands offer click and collect options and returns from online orders can be made in store. For consumers spending a greater amount of time at home, collections from and visits to local branches will be more convenient.
Community. During lockdown many local independent stores were able to maintain trading and were seen to be "doing good" by supporting the local community. They quickly adapted to social distancing measures, embraced social media and offered home deliveries, all building relationships with their local consumers.
Butchers, bakers, fishmongers and green-grocers have been the main retailers to remain operational. Examples include Parson's Nose butchers in London (seen above) which have been providing a delivery and click and collect service and Jungs Bakery in Beaconsfield who have expanded their bakery proposition to offer takeaway pizza and coffee. Non-essential retailers have had to focus on their online platforms but Bristol Co-Lab gift shop went one step further and offered free hand delivery of products bought online.
Ethics. Lockdown has forced many consumers to revaluate their shopping behaviour. Consumers have spent months without engaging in mass consumerism and many have learnt they can do without and have appreciated the money saved. This is likely to translate into an increase in sustainable shopping and a desire for more unique and local products. Independent shops are better suited to this proposition compared to national multiples, and benefit from providing consumers with access to products which cannot be purchased online.
Safety is a huge concern underpinning the return to large shopping destinations. Despite social distancing measures, some consumers may be unwilling to visit areas with large crowds or confined spaces such as shopping malls. These consumers are likely to feel safer visiting small, local shops and high streets which are better able to manage the movement of people and have greater control over the number of consumers who can enter their premises.
Multi-channel. The expansion of online platforms such as ShopAppy enables local independent shops and businesses to show information, products and services they have for sale. The platform enables local residents to view what is available on their local high street, encouraging customers to visit, but also facilitates online purchases from multiple stores with all items collectable from a single store. Whilst only operational in 100 areas presently, this ability for independent retailers to engage in multi-channel retail can continue to expand their profile and provide convenience for consumers.
We expect that as consumer confidence grows footfall in regional centres and shopping malls will start to increase. However, there remains a huge opportunity for local retailers to build on the relationships they have formed with local consumers during lockdown, capitalise upon more thoughtful and mindful consumers and provide a convenient, streamlined and pleasant shopping experience.
Olivia Gannon