Convenience retailers across the UK have invested a record £1 billion over the past year in upgrading their stores, with a focus on energy efficiency and crime prevention, according to the 2024 Local Shop Report published today by the Association of Convenience Stores (ACS). The investment, which represents a sharp increase from £646 million in the previous 12 months, is the highest recorded since the report’s inception in 2012.

The substantial spending underscores the growing importance of the convenience sector, which not only serves local communities but also plays a vital role in the wider UK economy.

Retailers have been refitting stores with new energy-efficient refrigeration and lighting systems, while also ramping up measures to detect and prevent crime, ensuring their businesses are sustainable and secure for the future.

A Resilient and Vital Sector

The 2024 report highlights the critical role independent retailers play in the UK’s convenience store sector. According to the findings, 71% of the 50,387 stores in the convenience sector are independently owned, either unaffiliated or as part of a symbol group.

Moreover, 56% of these retailers fund investments from their own reserves, reflecting their commitment to reinvesting in their businesses despite ongoing economic challenges.

Convenience stores provide flexible, local employment for around 445,000 people across the country, while also offering a wide range of essential services to their communities. More than one in six stores (17%) now features a self-service till, a sharp increase from just 3% in 2019, as retailers embrace technology to enhance efficiency. Additionally, 47% of independent retailers offer home delivery or click-and-collect services, reflecting the sector’s adaptability to changing consumer needs.

Sector Investment Powers Local Economies

Speaking on the release of the report, James Lowman, chief executive of the ACS, emphasised the vital economic role of the convenience sector, noting its impact on both local and national levels.

“The convenience sector continues to demonstrate its importance to the UK economy at both a local and national level, as a vehicle for investment, as a job creator, and as a means of generating over £9bn in tax income for the Treasury,” Lowman said.

He attributed the increased investment to retailers’ efforts to future-proof their businesses, particularly through two main avenues: upgrading store infrastructure with energy-efficient technology and enhancing the range of services offered.

Many convenience stores now feature cash machines, banking services, Post Offices, prescription collections, and dry cleaning, consolidating services traditionally found on the high street under one roof. These offerings have allowed convenience stores to maintain their relevance as community hubs.

Overcoming Challenges

Despite the sector’s strong growth, convenience retailers continue to face significant challenges, including retail crime and rising far-right violence. However, independent retailers remain resolute in their commitment to supporting and enhancing their local areas.

Peter Batt, managing director of Nisa, acknowledged the resilience of independent retailers, stating, “Today’s ACS Local Shop Report again highlights the critical role independent retailers play in supporting their local communities.”

With independent retailers making up 71% of the sector, Batt noted their unique ability to offer personalised services tailored to local needs. “Despite the ongoing challenge of retail crime and the shocking far-right riots, retailers continue to demonstrate their unwavering commitment to serving and enhancing their local areas, and I’m particularly proud of the way our Nisa retailers have persevered,” he added.

A Bright Future for Convenience Retail

As convenience retailers continue to invest in their businesses and evolve to meet the needs of their communities, the sector’s importance to the UK economy remains undeniable. The record £1 billion investment in store upgrades and services reflects the determination of retailers to not only survive but thrive in an increasingly competitive and challenging retail landscape. With a focus on sustainability, efficiency, and community support, the future of the UK convenience sector looks promising.