An in-depth survey of 500 independent retailers gives unique insight into their trading realities. Siân Harrington reports
If Charles Dickens were alive today, he would likely chronicle the life of an independent grocery retailer. For like the downtrodden workers he wrote about in his social commentaries on 19th century England, the life of an independent retailer today is one of long hours, few breaks and potential danger every day - all for ever-diminishing returns.
So why do people continue to work in independent stores in the face of ever-increasing competition from the multiples? And is there a future for this sector?
To understand what is really happening at the coalface, The Grocer commissioned an in-depth survey of 500 independent grocery retailers across the country.
Field marketing agency Headcount carried out face-to-face interviews between January 31 and February 11 in and around Birmingham, Glasgow, Portsmouth, Cardiff, Greater Manchester, south and east London, Leeds, Bristol and Guildford to discover the issues and challenges that are affecting these independent retailers.
The results point to a sector facing mounting pressures but also one that can give people great satisfaction, if not financial rewards. However, they also show that fears the independent grocery retail sector could be wiped out altogether are not exaggerated.
“This is a group of people who work long hours and cope with a great deal in order to serve their local communities,” says Lynda Edge, chief executive of Headcount.
“A vibrant small business sector is vital for the overall health of the economy.
“With all the column inches devoted to the multiples, the local stores that are, in many cases, champions of the convenience sector can be unsung heroes.”
Half the stores in the survey are traditional independent corner shops. Nearly one fifth are affiliated independents, 18% CTNs and the rest either independent off-licences or food specialist stores, such as bakeries or delicatessens. Three-quarters of those surveyed own the store while 17% are the store manager. A sixth have taken over the business from their parents.
The vast majority of stores open seven days a week (90%), with those in south west London more likely to open every day (98%). A third of independent retailers open on Christmas Day, with stores in Glasgow most likely to open (74%) and in Birmingham least likely (81%).
The overriding conclusion is that it is tough out there. Nearly two-thirds say trading is down on last year - and many point the finger at the major supermarkets. Just under
a third (30%) have a multiple owned convenience store located nearby and a quarter believe that this has had a direct impact on their business. This is particularly the case in south west London where 71% have been affected.
“There are three multiples’ local stores in the area and it is really threatening business, especially as they open from 7am to 11pm,” says Sham Arvind, owner of Hardings Newsagents. “Government should look after small business, but it hasn’t. Instead, it is encouraging multiples to open small stores.”
Mr Candy, proprietor of AS Food and Wine, agrees. “This is my first independent business and it is very quiet. The big threat is that Tesco and Sainsbury are opening small shops everywhere.”
However, Mrs Mina Patel at Bhatra News says it’s not just the multiples’ convenience stores that affect trade - their superstores also have a knock-on effect.
“Having a Tesco nearby has made a hell of a lot of difference. We are in a row of shops and after Tesco came, one turned into a Costcutter and we saw an immediate drop in sales,” she says.
And while many independents have yet to see an impact from the multiples, one in six would be worried if such outlets were allowed to open all hours on a Sunday.
If it were not for family, many of these businesses would not survive at all. More than three-quarters have family members working in-store.
“Being a family business, we are prepared to suffer financially to keep going,” says Angela Cina, whose Panetteria Italiania business has been in the family for 30 years.
However, although many of the businesses are family-orientated, nearly two thirds have no wish for their children to take over the business from them. And while one in five hope their offspring will carry on the business, 59% will not encourage their children to become independent retailers at all.
“We carry on while we can,but I don’t think anyone in today’s generation will do this job,” says Arvind.
But while the prognosis appears bad, there are many independent retailers who regard their job as a vocation and would not want to do anything else.
“It’s fantastic,” says Ali Fazand, partner at Eats & Bits.
“You meet loads of great people and don’t have to answer to anyone.”
If Charles Dickens were alive today, he would likely chronicle the life of an independent grocery retailer. For like the downtrodden workers he wrote about in his social commentaries on 19th century England, the life of an independent retailer today is one of long hours, few breaks and potential danger every day - all for ever-diminishing returns.
So why do people continue to work in independent stores in the face of ever-increasing competition from the multiples? And is there a future for this sector?
To understand what is really happening at the coalface, The Grocer commissioned an in-depth survey of 500 independent grocery retailers across the country.
Field marketing agency Headcount carried out face-to-face interviews between January 31 and February 11 in and around Birmingham, Glasgow, Portsmouth, Cardiff, Greater Manchester, south and east London, Leeds, Bristol and Guildford to discover the issues and challenges that are affecting these independent retailers.
The results point to a sector facing mounting pressures but also one that can give people great satisfaction, if not financial rewards. However, they also show that fears the independent grocery retail sector could be wiped out altogether are not exaggerated.
“This is a group of people who work long hours and cope with a great deal in order to serve their local communities,” says Lynda Edge, chief executive of Headcount.
“A vibrant small business sector is vital for the overall health of the economy.
“With all the column inches devoted to the multiples, the local stores that are, in many cases, champions of the convenience sector can be unsung heroes.”
Half the stores in the survey are traditional independent corner shops. Nearly one fifth are affiliated independents, 18% CTNs and the rest either independent off-licences or food specialist stores, such as bakeries or delicatessens. Three-quarters of those surveyed own the store while 17% are the store manager. A sixth have taken over the business from their parents.
The vast majority of stores open seven days a week (90%), with those in south west London more likely to open every day (98%). A third of independent retailers open on Christmas Day, with stores in Glasgow most likely to open (74%) and in Birmingham least likely (81%).
The overriding conclusion is that it is tough out there. Nearly two-thirds say trading is down on last year - and many point the finger at the major supermarkets. Just under
a third (30%) have a multiple owned convenience store located nearby and a quarter believe that this has had a direct impact on their business. This is particularly the case in south west London where 71% have been affected.
“There are three multiples’ local stores in the area and it is really threatening business, especially as they open from 7am to 11pm,” says Sham Arvind, owner of Hardings Newsagents. “Government should look after small business, but it hasn’t. Instead, it is encouraging multiples to open small stores.”
Mr Candy, proprietor of AS Food and Wine, agrees. “This is my first independent business and it is very quiet. The big threat is that Tesco and Sainsbury are opening small shops everywhere.”
However, Mrs Mina Patel at Bhatra News says it’s not just the multiples’ convenience stores that affect trade - their superstores also have a knock-on effect.
“Having a Tesco nearby has made a hell of a lot of difference. We are in a row of shops and after Tesco came, one turned into a Costcutter and we saw an immediate drop in sales,” she says.
And while many independents have yet to see an impact from the multiples, one in six would be worried if such outlets were allowed to open all hours on a Sunday.
If it were not for family, many of these businesses would not survive at all. More than three-quarters have family members working in-store.
“Being a family business, we are prepared to suffer financially to keep going,” says Angela Cina, whose Panetteria Italiania business has been in the family for 30 years.
However, although many of the businesses are family-orientated, nearly two thirds have no wish for their children to take over the business from them. And while one in five hope their offspring will carry on the business, 59% will not encourage their children to become independent retailers at all.
“We carry on while we can,but I don’t think anyone in today’s generation will do this job,” says Arvind.
But while the prognosis appears bad, there are many independent retailers who regard their job as a vocation and would not want to do anything else.
“It’s fantastic,” says Ali Fazand, partner at Eats & Bits.
“You meet loads of great people and don’t have to answer to anyone.”
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