Last year we were writing about the “Swiss Army knife c-store", a shop that could hold its own against the mults and discounters because it stood at the centre of its community. It would dispense not just groceries but many of the services that encourage people to visit, the everyday things they rely on – from post-office counters and banking to picking up parcels and even dry-cleaning – that could save them a trip into town and encourage them also to purchase some extra items while they were in-store.
The development has been ongoing for some time, and the digital revolution meant continually upgraded and affordable ePOS systems and digital stock-taking enterprises, until electronic shelf-edge labels, self-re-stocking systems and other space-age miracles started to come within reach of even the smallest retailer.
Now, shopper-side, smartphones can be used to make purchases if the store is connected through Snappy Shopper, Jisp or some other online programme, and it can be done remotely, with physical delivery attached – a system which, at a stroke, can vastly increase the sales catchment area of a store: food-to-go particularly benefits from it.
Covid was a double-edged sword in the end, because for all of its inconvenience and even tragedy, it had the effect of putting these changes on steroids, and catapulted the local store to a new peak of importance in the community, fundamentally changing the nature of the business in many instances, and providing a compelling use-case for a lot of the new tech that enabled fresh services to satisfy consumer demands.
During the development of all these innovations, which seemed to be overwhelmingly customer-focussed, as one would expect (since it was the obvious way to take advantage of tech to make more sales revenue), another thread or impetus for development began to appear. This one perhaps grew out of the first stage but seemed more to be aimed at making the lives and routines of retailers easier and more efficient, indirectly enriching the customer experience. Security systems such as Face Watch come to mind.
Gander app
Another example of a service for retailers that also helps customers might be the inventory management system pioneered internationally by Gander. Through its software-as-a-service (SaaS) technology platform, Gander lets retailer know when items are nearing their expiration date, reducing in-store food waste and promotes a circular economy. The heightened stock oversight enables more effective merchandising of products whose shelf-life is running out – perhaps placing skus on offer and at a discount – and which otherwise might go in the dumpster. The customer wins, but so too now does the business.
Ricardo Salazar, CEO of Gander Brazil (the company is also in Australia as well as the UK), highlighted the usefulness of Gander's platform: “The urgency of transforming our efforts to reduce food waste is clear. Gander’s technology enables retailers to reach more consumers, ensuring perfectly good food is sold and consumed rather than wasted. This benefits everyone – retailers maintain their margins, consumers access affordable food, and the resources used in food production are preserved.”
It is the eco-system of evolving, interrelated software and systems that can multiply revenue opportunities and business advantages – with the new recycling regulations coming in, retailers will be wise to take advantage of up-to-the-minute waste services. Again, this is a development that is store-side, although customers will benefit from it.
Gander was launched in 2019, not long before the pandemic swept the globe. It integrates directly with retailers’ POS, automatically, meaning nothing changes in-store at all and no additional staff training is required. The platform allows the customer ultimate control over what reduced priced goods they search for, whether by price reduction, food type or even dietary preferences. Since its launch, Gander has saved an impressive 38.9 million food items from the waste bin.
The point is that there is a bi-directional movement, a convergence, with services directed at shoppers and those directed at retailers coming together and integrating to really have a positive economic effect on businesses. If you read Pooja Shrivastava’s bombshell news feature, which reveals how demand is being stripped from the c-channel, chiefly by a loss of sales in tobacco and alcohol (which is soon to be made worse by even more regulations and taxes), you will see how the economic boosts from taking advantage of in-store services (and “out-of-store" ones such as delivery) cannot be ignored.
Delivery
It is vital for bricks-and-mortar retailers to fully integrate with online sales and their own physical delivery service, and this goes double for local independent retailers, who are in a fantastic position to really cement themselves, in terms of services allied to the internet, as the central pillars of all kinds of sales in their catchment areas. You can literally deliver – or with new parcel-locker options springing up, let customers collect from your store – almost anything from anywhere, meaning you can function as the new Selfridges of your street if you arrange it properly.
Apparently, Brits spend 8.8 per cent of their incomes online, according to analysis by a fashion retailer, double what consumers spend in some other countries (4.3 per cent in the USA and France, for example).
The ONS says that two decades ago, 2006, just 2.8 per cent of UK retail sales were via the internet. By last Christmas that had risen ten-fold to 29.3 per cent. Much of this is not on Amazon but through links on social media, which is overwhelmingly where people now spend their time online. You might click on Amazon once or twice a week, but people are on social media for hours daily, so the retailer who runs a well-updated Facebook page, for example, and is linked up to Snappy Shopper – and maybe can deliver – has opened a potential new world of sales.
So, while the internet has managed to gut the high street, it can also improve the lot of certain shops – namely local convenience stores – who can integrate customers’ online activities with their everyday needs and serve them speedily, whether that involves delivery or click-and-collect.
Rise of delivery lockers is revolutionising the way we send and receive parcels
Matthew Fearn, Head of Network Sales at locker-meisters InPost, says that consumer demand for out-of-home delivery has “skyrocketed” and that the rise of delivery lockers is revolutionising the way we send and receive parcels.
“Today’s shoppers crave convenience,” he says, “and having a parcel nicked from your doorstep or missing a delivery is anything but. As a result, we’re seeing huge demand for InPost Lockers – one of the quickest, cheapest and most convenient forms of out-of-home (OOH) delivery.”
Self-service convenience, with lockers sited outside the store, means that parcels can be collected by consumers 24/7.
“Over half of UK consumers have used them for online purchases, and that rises to 71% for Gen Zs and 68% for Millennials. There is nothing more convenient than being able to pick up a parcel when you’re already out and about on a shopping trip – so it’s no big surprise this is the top reason for choosing a locker. These convenience-loving locker users are more affluent, with 31% having an income over £50k and 39% shopping once a week or more, so they can spend more, and shop more, making them a valuable audience to attract,” says Fearn, adding that lockers also help the environment , since a central “depot” means fewer deliveries, fewer vans on the road – he cites a figure of 84 percent of shoppers who like to do their bit for the planet and think collection offers a greener solution and makes for a feel-good shopping excursion,.
Fearn adds that storing deliveries on-site, if not in-store, increases footfall and drives incremental sales, as customers using them often make additional purchases when visiting a store (based on a survey of over 2000 InPost users). In fact, 98 per cent said the main reason they visited a convenience store location was because an InPost Locker was present, with 74 per cent visiting the convenience store before or after using the locker, and a third spending up to £15 in store.
“The locker market remains extremely strong, and we have aggressive growth plans in place to help more retailers capitalise on this demand. Ultimately, we want to have every UK consumer using InPost Lockers as part of their journey,” he concludes. We remain focused on building density of network and improving user experience by adding new services and features for merchants and customers. As pioneers in the industry, we are revolutionising parcel delivery by making lockers an affordable, convenient and quick way to send, receive or return a parcel, with further innovation planned for 2025.
Meanwhile, parcel locker provider Yeep! – which calls itself a “community-based, eco-friendly parcel place” has partnered with Co-op and will have its facilities installed at 30 stores in locations in locations across the country, and it is likely that once the attractiveness of lockers becomes common knowledge, 2025 might prove to be the year of the locker.
"The parcel lockers form part of Co-op’s approach to develop added services and enhanced convenience - creating a compelling customer offer to ensure our stores are a convenient destination not only for groceries but for a range of services that meet the needs of local communities,” said George Hayworth, Head of Quick Commerce Development at Co-op
Shopping online in-store
Using your phone to buy goods instore, or from afar to collect or have delivered, is a revolution that has already happened and is now taking over the retail world – especially in grocery.
Snappy Shopper, for example, closed out 2024 with a record-breaking December, achieving rapid growth and recording an eight per cent increase in Q4 2024, with weekly trading volumes surging by 42 per cent YOY, marking the platform’s most significant growth since the surge in demand during the Covid-19 pandemic in 2020. Snappy now facilitates over £14m in monthly transactions, with an average delivery order value of £29 – nearly four times the typical in-store transaction value (ACS Local Shop Report, 2024).
This suggests that something like a secular change is taking place in the market, and that ordering by smartphone is fast becoming a default option. Retailers need to have the local delivery capability to benefit from it, however.
During December, for example, Hayat’s Premier Store in Dundee made more than £200,000 worth of grocery deliveries in a single month from a single store, at times making more deliveries per hour than a nearby supermarket – the responsiveness of a smaller store proving more practical.
“Our technology is empowering retailers to connect with their communities like never before,” said Mike Callachan, CEO of Snappy Shopper.
“This growth reflects a global shift in consumer behaviour, with q-commerce [q for “quick”] becoming an essential part of everyday life. It has never been more important to tap into the growth and profitability opportunity available online.”
Retailer Girish Jeeva is set to launch a 24-hour delivery service in partnership with Snappy Shopper.
He points out that unlike some larger retailers who have faced well-documented challenges with technology failures and delivery disruptions during peak times, Snappy Shopper’s tech has worked consistently and empowered independent retailers and store groups to thrive amid growing demand for delivery services.
Similarly, retail technology experts Jisp have recently launched Jisp Intelligence to capitalise on AI trends and provide actionable data and consumer insights reporting to help businesses meet the needs of the modern shopper.
Jisp believes shopper data is a goldmine for retailers and brands, allowing them to understand purchasing patterns, preferences, and trends, and has gathered valuable insights into customer shopping habits. This data has empowered brands to tailor their marketing strategies, optimise inventory, and ultimately increase sales.
The richness of the data and insights Jisp can access has been further enhanced through initiatives launched under Jisp’s new growth strategy. The introduction of point of purchase feedback, for example, represents a significant leap forward in Jisp's capabilities.
By capturing consumer reactions and feedback at the moment of purchase, Jisp can provide real-time insights that can inform immediate marketing and operational decisions. This initiative not only helps brands understand what drives consumer choices but also allows them to adapt quickly to emerging trends.
Again, this is a service that immediately helps retailers build their knowledge and plan their stock, but by taking note of customer habits, it also gives customers more of what they want in terms of convenience and savings through efficiency – without supplier and retailer losing all the savings advantage.
Marketing & Communications Director Alex Rimmer says that Jisp's new NPD reporting plays a crucial role in product development and marketing strategies. It analyses feedback on new products so brands can adjust their offerings and fine-tune marketing messages the better to resonate with consumers.
“Data is the new fuel for the retail world. It provides businesses with the insights they need to tailor their offerings, optimise their marketing strategies, and ultimately drive sales,” he says.
“The level of data and insights Jisp can extract means its findings will be valuable to the whole sector, whether retailer, wholesaler or brand – we can see who is buying a product, when, where, how often, and how the value of a promotion impacts purchase. And because we can get down to very micro-level shopper intelligence, there is the opportunity to collaborate with other data and research businesses to provide actionable data and insights of even greater value.”
Cash and credit
Despite what the government seems to think, cash is very much not on the way out despite parliament recently announcing that shops and hospitality would not be compelled to accept “green money” (meaning that in many places – most pubs, it feels like – you will only be able to pay by card and phone). In fact, people like cash and are using more of it, and they get very annoyed when they are not allowed to, especially locally, in their communities, when they are not spending a great amount.
Cash-counters Volumatic believe that the UK is witnessing a resurgence in cash, as revealed by a new report from Nationwide Building Society. For the third consecutive year, cash withdrawals have risen, with ATM withdrawals increasing by nearly five per cent over the past year. In 2024 alone, over 30 million withdrawals were made, totalling £4.34 billion. Since 2021, the number of cash withdrawals has surged by nearly 30 per cent, defying the narrative of digital payment dominance.
Cash has the great advantage of reminding you then and there that your bank balance is shrinking when you hand over notes and coins, meaning that in the current climate people are increasingly turning away from the credit card “never-never” when they can. And that means c-stores can benefit by going pro-cash with the services they provide, from ATMs to keeping a good float in the till for handing out change.
Volumatic’s CountEasy
It is undeniable that the ongoing cost-of-living crisis has prompted many consumers and businesses to re-evaluate their payment habits, agrees Mike Severs, Sales & Marketing Director at Volumatic. He says that for many, cash remains a trusted, resilient, and private method of payment. Businesses that have shifted to cashless models may be losing customers who prefer the option to pay with cash, underscoring the need for payment flexibility in a challenging economic climate.
Quasi- or para-banking services in-store, however, are an absolute no-brainer for c-stores. You might not have a post office, but you can have PayPoint and allow customers to settle bills and send money where they need to – and they’ll love you for it.
PayPoint Group is doing so well, in fact, that it thinks it will surpass its ambitious target of £100 million EBITDA by the end of next year.
“Our business has continued to deliver further progress in the third quarter building on our strong first half year performance, despite a more challenging overall trading environment and a stalled recovery in consumer confidence,” Nick Wiles, chief executive of PayPoint Plc, said.
“Recent figures show consecutive annual increases [in cash use] since the pandemic ... it’s evident that cash is no longer in decline,” said Mike Severs. “Businesses must adapt to this trend by maintaining the option to accept cash and promoting it to customers. Investing in cash handling technology can streamline operations, improve efficiency, and reduce costs.”
Severs also highlighted the risks businesses face when going cashless. He adds: “Those who have moved to card-only payments should reconsider, as they risk losing customers and revenue. We have seen many retailers and quick-service restaurants reintroducing cash payments with significant success, boosting profits and enhancing customer satisfaction.”
Recycling and waste services
With the government’s new Simpler Recycling reforms due to be implemented, most businesses remain unprepared for the changes, says Mark Hall, Director of Business Waste, a leading waste management business – another service that retailers can benefit from, and therefore so can their customers.
Additionally, with the waste and recycling environment looking to become ever-more regulated under the current government – with steep fines lurking everywhere if the innocent retailer should accidentally break some brand-new rule – it is worthwhile to invest in getting the rubbish problem professionally addressed.
Hall explains that although the UK's overall recycling rate has seen a significant rise, reaching 44 per cent in 2015 compared to just 17 per cent in 2008, progress has plateaued in recent years, with indications that the rate may now be declining.
But according to the Simpler Recycling reform mandate released by DEFRA, by 31 March 2025, businesses and relevant non-domestic premises in England will need to arrange for the collection of the core recyclable waste streams.
The Association of Convenience Stores (ACS) has launched new guidance for retailers in England detailing what they have to do to stay on the right side of the law when new rules on separating waste come into force at the end of March when businesses (meaning the entire business, not just one store) with more than 10 full-time equivalent employees will be required to separate their waste into four different streams. Those with fewer than 10 FTE employees will have until March 2027 to comply.
The four waste streams that will need to be segregated are:
- Dry recycling (glass, metal and plastic)
- Paper and card
- Food waste
- Black bin waste (to be sent to landfill)
Some waste collectors will take dry recycling and paper/card together, but retailers will need to confirm this with their collector.
Hall explains that businesses must arrange separate collections of food waste, paper and cardboard , and other dry recycling (glass, plastic, and metals, which can be combined). It means businesses can no longer throw any of these materials away with general waste. That’s a big change and needs in many cases to be planned for: Business Waste sent out communications to over 15,000 customers to make them aware of DEFRA's new Simpler Recycling reforms only for response data to reveal just one per cent (!) were aware of the new laws.
By 31 March 2025, businesses and relevant non-domestic premises in England will need to arrange for the collection of the core recyclable waste streams
Hall said that micro-firms (businesses with fewer than 10 full-time equivalent employees, so a decent proportion of C-stores are included here) will be temporarily exempt from this requirement. They still have until 31 March 2027 to arrange for recycling of core recyclable waste streams.
"A great place to start is to conduct a waste audit to understand how much waste your business produces, what types of waste you generate, and what bins and collections you need. Business Waste offers a free waste management audit that can help,” says Hall.
"Following on from this, you can then look to create a waste management plan that will help ensure your business manages its commercial waste safely, appropriately, and efficiently.
"All staff must understand the new laws and what changes are being made in the business to follow these. Educate staff about the waste you generate and its impact on the environment, so they understand the reasons behind the changes.
"Set clear guidance to follow and provide instructions or labelling that helps staff segregate and dispose of waste correctly.
"Reducing waste is cheaper and better for the environment than removing it. Look for ways your business could reduce its waste at the source. Rethink packaging, switch from single-use products to reusable options, or evaluate your inventory management.
"A waste broker can help you understand your waste needs, arrange any collection and disposal services, and work with their suppliers to find you the best price.
ACS chief executive James Lowman said, “Retailers need to take a practical approach to the bins that they provide and assess the risk of recyclable waste being contaminated or requiring further separation, especially in places like petrol forecourts where more retailers will have bins that they are responsible for outside of the store.
"This is a significant change to waste separation and collection that retailers need to prepare for sooner rather than later.”
Tech for the future shop
Speaking of fines for accidentally breaching the many new rules and laws being applied to the sector, it should be said that tech can help protect retailers in other areas, too.
With far more stringent tobacco and vape legislation incoming, and entire businesses at risk for unknowingly selling beer to a 17-year-old, it is vital for retailers to protect themselves.
It is excellent news, then, that this year retailers will be able to accept digital proof of age to sell alcohol, after the government recently announced that it will introduce digital driving licenses (previously a photo on a phone was not enough).
CEO James Lowman represents ACS on the board of PASS – a not-for-profit body formed in 2001 to set standards for proof of age, the security features of that proof of age and the process for accepting it – and has chaired working groups developing digital proof of age standards and acceptance systems for the past five years.
"With a physical proof-of-age card, all the security features are there to inspect, notably the PASS hologram and thermally-integrated picture (no edges or bumps),” he says.
"It’s more complex with digital proof of age because what you could be shown on the screen could have been doctored in any number of ways; there needs to be a digital 'handshake' between the retailer and the customer to verify its validity.
"Thankfully PASS now has a system ready to go to do exactly this job.
"Two quick scans and the proof of age can be verified with minimal data transfer – you only need to know if that person is old enough to buy the product they want, you don’t need to see their address much less get into the ramifications of holding customer information."
Lowman also pointed out how getting the use of digital proof of age right and combining it with effective use of age estimation technology would bring huge savings to retailers using self-service checkouts.
"Customers over 25 could breeze through without age checks, those under could prove their age to the till, with colleagues playing an oversight role," he wrote.
"Technology playing a greater role in determining customers’ age will reduce the number of times a colleague challenges a customer, something we know causes friction, conflict and even violence on a daily basis.
QR Squared helps brands move beyond stripy barcodes
Digital proof of age, including a digital driving licence, offers real benefits for local shops.
"We need to stay at the centre of discussions on how this is used in stores so that we can fully realise these", stated Lowman.
Another fine example of how smaller digital advances are going to help independent retailers comes courtesy of QR Squared, a recently launched new digital service designed to help brands of all sizes future-proof their packaging through certified QR codes.
QR Squared will introduce a fully compliant, approved, and secure platform to create and download Digital Link QR codes for the food and grocery sectors. In an industry first, this will provide a seamless transition from traditional barcodes to 2D barcodes, from enterprise businesses to challenger brands of all sizes.
Ahead of packaging change initiatives, including the discontinuation of barcodes and the introduction of Digital Product Passports, QR codes will become an essential tool for independent retailers. It enables brands to easily upgrade their current barcodes to QR codes, which will scan securely at point-of-sale at retailer checkouts. The same QR code is scanned by customers to access more information on the brand or product – intelligent, communicative bar-coding that links up with other apps, including social media for customers.
Brands can quickly create and manage customised landing page content for each product – at scale – through their QR Squared account. This content, accessible via a simple scan of the QR code, provides consumers with relevant and engaging information. The platform also allows brands to easily update and edit landing pages in real-time, even after products have been labelled, ensuring timely and relevant messaging for consumers.
“QR codes can operate at barcode level unlocking meaningful consumer communication opportunities to those businesses that want to get ahead of the curve,” said Alice Rackley, CEO of QR Squared and Polytag. “The team behind QR Squared are confident that the solution launching today - in partnership with GS1 - will transform many industries.”
With all these useful and often low-cost-to-free advances benefitting hard-pressed retailers, it is definitely time to think about upgrading expanding the services your store can offer to customers – especially delivery and collection, and in-store financial facilities – alongside taking advantage of the services being offered to retailers from many physical and digital companies, who profit by making your life easier. It’s a virtuous circle that helps to fight against ongoing economic conditions and onerous legislation.
