Retailing isn’t just about ringing up sales anymore—it’s about creating happy shoppers! A great customer experience is the secret sauce that builds brand loyalty and keeps people coming back for more.
Convenience retailers have an edge to shape and create memorable experiences by understanding customer behavior and subtly influencing their decisions.
But it isn’t as simple as it sounds. Did you know the average consumer spends just 4 to 20 seconds in front of shelves before deciding what to buy?
According to Vincenzo Russo, professor of consumer psychology and neuro-marketing at IULM University in Milan, these fleeting moments are driven largely by emotion, rather than rational consideration.
Interestingly, it is this overlap between “emotion and memory” that has crucial implications for influencing our ability to remember a product, a brand, and, therefore, to choose it again in the future, he said.
If only there was a way or rather a sure shot formula to hack this overlap!
If you think that’s tricky, here's another fact to consider. According to SAP Emarsys’ annual Customer Loyalty Index (CLI), almost half of UK Gen Z shoppers (46 per cent) and 29 per cent of other generations have abandoned a brand they were once loyal to because they grew “bored” of them.
Take the case of Liquid Death bottled water, which has been “radically entertaining” its audience to cut through the noise. The study states that 30 per cent of Gen Z, compared to 23 per cent of all demographics, have tried a new brand because of its “creative marketing”.
Additionally, over a quarter of Gen Z (31 per cent) are enticed by brands that use “cool” content or imagery, versus 21 per cent of other age groups. Meanwhile, 28 per cent of Gen Z, compared to 17 per cent of other demographics, seek out brands that deliver “memorable experiences”.
Clearly, consumers today, not just Gen Z, expect more than “business-as-usual"; they want meaningful and memorable experiences. No wonder, it is imperative to arm the stores with tactics to make them capable of leaving a mark on shoppers’ minds.
Perk up
The store entrance should be warm and welcoming. Placing fresh produce facing the entrance is an effective way to set the mood as the sight of bright fruits, or even fresh flowers signal quality and care to shoppers.
Well-organised shelves and clear signage help customers find what they need quickly. Use vibrant colours and attractive displays to catch your shoppers’ eye. Consider having a color theme but remember that sensory overload can make it difficult for customers to concentrate on products and focus enough to make a purchase.
In convenience stores, milk, bread, eggs, and crisps are hero products—the things people come for most frequently. So don’t bury them but also don’t make it too easy to find. While stores shouldn’t force shoppers to embark on a store-wide expedition for a pint of milk, placing such products just a little further inside the store creates a natural journey that gives other products their moment to shine.
Eye-level is buy-level—it’s an old trick, but it works. Place impulse items, snacks, and seasonal products in high-traffic areas like near the checkouts or next to essential goods. Use lower shelves for staple items that customers are likely to search for, such as porridge, pasta and so on.
Also, cross-merchandising can add a ton of magic to the sales. Think bread next to spreads, pasta near sauces, as well as crisps alongside beer.
Create clear zones with proper sign posting. Quite contrary to supermarkets, shoppers visit the neighborhood convenience stores in a hurry so they would appreciate finding things more easily rather being lost in a maze.
With the rising inclination towards health and fitness, it is a great idea to elevate the health quotient of stores as well. Dedicating and highlighting a section for organic, gluten-free, and vegan items can do wonders in bringing more footfalls from shoppers seeking healthier alternatives.
Installing a small refill station for basics like cereals, pasta, or cleaning products is also a great way of not only cutting down on single-use packaging but also for holding a place in shoppers’ minds.
Some independent stores, like Central Co-op Dodworth Community Store and Woosnam and Davies in Wales are already pioneering refill retailing.
As told by Asian Trader Award winning retailer Ehamparam Karunanithy who runs Premier Talbot Store in Poole, vouch for refill station, saying it not only work great for environment, but also it is easy on his shoppers’ pockets as it gives them flexibility to control the amount they are buying.
Engage all senses
Merchandising is not only about visual appeal. Apart from sight, retailers should try to engage all five senses to create a truly memorable shopping experience.
Tempting scents are a powerful, often overlooked tool. Aromas can evoke positive emotions and even trigger hunger! In fact, the smell of fresh bakery has been known for ages to pull even passing by shoppers into a store.
Light background music or even ambient sounds can subtly shape the mood of not only the shoppers but also of the staff. According to new survey by a music licensing company, four-fifths (82 per cent) of retail worker recognise music mood-boosting benefits during a shift, while two in five workers claimed that customers respond positively to music in store.
Another way to engage a key sense is having tasting sessions in the store. Sampling is a classic but often underused tactic. Let shoppers try a new snack or soft drink or wine—once it’s in their hand, they’re far more likely to buy.
Nisa Local retailer Amit Puntambekar, who often conducts tasting sessions in his village store, told Asian Trader, “When we introduce new lines of wine (from Hatch Mansfield), we often hold tasting sessions. These products can be anything between £10-20+. The tastings help the customer understand the price-point and give them confidence to buy the product.”
Seasonal and Local
Seasonal merchandising is a massive opportunity. Be it annual tradition like Christmas, Easter, Halloween, the summer BBQ season or sport events like EURO 2024 cup, convenience stores can play an instrumental role in creating buzz in the community.
The key is to plan well ahead and catch early shoppers. A dedicated seasonal display—well-placed and well-lit— tends to draw in attention of customers.
This year saw several leading convenience retailers like Aman Uppal and Neil Godhania embracing immersive merchandising when they went an extra mile in creating in-store theatre themes around EURO 2024.
While Uppal’s One Stop Mount Nod store in Coventry created a “5 meters by 4 metre football pitch” in the centre of the store, Godhania’s Neil’s Premier store in Peterborough was installed massive Euro themed vibrant displays throughout the store, along with a small goal post. England did lose the finals, but these stores won as they were successful at creating memorable experiences for the community along with a great talking point and some great sales too.
Godhania told Asian Trader at the time, “These efforts have created a festive in-store experience that’s helped attract more customers, drive footfall and boost sales. The response has been great, we have had an uplift in sales and change in consumer behaviour.
“Sales have increased significantly, and we’ve used the event to our advantage by enhancing our customer engagement through our in-house promotions.”
Additionally, shoppers love to feel connected to their roots, and local products provide that sense of authenticity as well as community spirit.
Retailers like Kaual Patel are setting some interesting benchmarks here. Not only fresh bakery items but his Nisa Local Torridon store also keeps potted plants provided by a local supplier.
“My community loves the fact that I actively work with smaller local suppliers,” he told Asian Trader.
Miles ahead
Replacing paper signs with sleek, easy-to-update digital screens might seem like a huge change but it can elevate the consumer experience to another level altogether. Not only do they look professional, but they allow retailers to quickly rotate promotions, announce limited-time deals, or even display video demos of new products.
Digital screens are another way to jazz up the whole experience. According to a survey, commissioned by Saturn Visual Solutions and carried out by OnePoll, people are more likely to splurge in a store with digital displays while a good portion of the younger generation think digital displays enhance their in-store shopping experience.
Other digital elements, be it presence on an instant delivery apps like Snappy Shopper or being on mobile marketing apps like Jisp can instantly elevate the overall experience.
Some convenience retailers are making some super-smart moves on social media to not only put their store on digital map but also to make it go viral, thus attracting massive footfall.
Run by retailer Imtiyaz Mamode, Wych Lane Premier store in Gosport is one such store that is not only popular in its neighborhood but also drives footfall from nearby towns owing to its huge fan following.
With almost 6,000 followers on Facebook and thousands more on TikTok, the store is popular online as “treasure chest for candy” owing to variety of American sweets from Reece’s Pieces to Nerds along with American range of cereals, soft drinks and ice creams.
The result? Shoppers from as far away as Leicester and Burnley flock to this store, some even documenting their visit on TikTok and Insta. Some of the videos made by customers showing the store’s range have garnered millions of views, attracting people from far and wide, with some ending up spending hundreds of pounds on one visit.
Mamode told Asian Trader, “For me, the change happened through social media. It helped me to broaden my customer base beyond the close vicinity as I was able to put my store on the virtual map and on the must-visit list for young people.”
Today, successful merchandising isn’t just about product placement—it’s about creating an environment that makes customers feel comfortable, cared for, and tempted to spend.
At the end of the day, even the best merchandising can fail if your staff isn’t welcoming or knowledgeable. Convenience stores have a unique advantage here. Armed with flexibility and personal touch, convenience stores can go miles ahead to create great shopping experiences. And some memorable ones too.
Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.
According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10 per cent compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15 per cent or more, which Vypr said shows the importance of price in driving consumers to adopt sustainable shopping habits.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86 per cent among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations.
“For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label ‘100 per cent Recycled Packaging’ and found price remained the key purchase decision-making factor for most consumers.”
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers are more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be seen here.
October’s footfall figures declined marginally as compared to last year, shows latest industry data, highlighting concerns for a policy environment that supports growth and investment.
According to data by British Retail Consortium (BRC), total UK footfall decreased by 1.1 per cent in October (YoY), down from +3.3 per cent in September. High Street footfall decreased by 3.6 per cent in October (YoY), down from +0.9 per cent in September.
Retail Park footfall increased by 4.8 per cent in October (YoY), down from +7.3 per cent in September. Shopping Centre footfall decreased by 1.6 per cent in October (YoY), down from +2.3 per cent in September.
Meanwhile, footfall increased year-on-year in three of the devolved nations, with Northern Ireland rising by 1.3 per cent, Scotland by 0.8 per cent, and Wales by 0.4 per cent, while England experienced a decline of 1.5 per cent.
Commenting on the figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said, "October’s footfall figures showed a marginal decline compared to last year, primarily due to half-term moving out of the comparison. Despite the decline, retail parks continued to attract shoppers, as they saw positive footfall growth for the third consecutive month. Across England, the northern towns performed best, with Leeds and Liverpool seeing positive footfall last month.
"Retailers have seen footfall consistently fall since the pandemic. Thriving high streets and town centres are not only good for local economies but also form a key part of the social fabric of communities up and down the country. With 6,000 stores closing in the past five years, retailers now need a policy environment that supports growth and investment.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented, "After the positive footfall performance we saw in September, October’s footfall dropped back into negative figures compared to the year before. While this will be disappointing for many retailers, who may have hoped the positive figures in September would spell the start of a more consistent uptick in store traffic, it perhaps shouldn’t come as a surprise.
"We expect to see a bumpy recovery as a myriad of market conditions - from the cost of living to shaky consumer confidence around the Budget – continue to make footfall performance volatile. Retailers now need to look ahead and focus their efforts on the rest of the Golden Quarter, delivering compelling reasons to visit in order to drive ambient footfall and sales during the key Christmas trading period.”
Local shops will face significant new pressures as a result of the Budget, the Association of Convenience Stores (ACS) has warned.
Chancellor Rachel Reeves' budget's impact will be felt unevenly across the UK’s 50,000 convenience stores, with some measures such as business rate relief and the increased employment allowance mitigating costs for smaller independent stores, while providing no help for chains and larger independent businesses.
The key measures for local shops announced by the Chancellor, and the costs for local shops associated with them, are:
National Living Wage to increase to £12.21 per hour
National Minimum Wage (18-20 rate) to increase to £10 per hour
Cost to the convenience sector next year: £7.739bn (increase of £513m)
Employers’ National Insurance Contributions to rise to 15 per cent
Threshold for Employers’ National Insurance contributions to fall to £5,000 per year
Employment Allowance to rise to £10,500 a year
Cost to the convenience sector next year: £397m (increase of £85m)
Retail and hospitality rate relief reduced from 75 per cent to 40 per cent
Small business multiplier frozen for 2025/26
Cost to the convenience sector: £267m (increase of £68m)
Total cost of main announcements (year-on-year difference): £666m
ACS Chief Executive James Lowman said: “The cold hard facts are that the measures announced in the past 24 hours have added two-thirds of a billion pounds to the direct cost base of the UK’s local shops. At a time when trade is tough and operating costs are stubbornly high, this will be challenging for our members to absorb and there will be some casualties on high streets and in villages and estates across the country.
“Not all shops will be impacted the same. The smallest retailers, with low NICs bills and lower rateable values for their shops, will benefit from the welcome increase in the employment allowance and the retention of 40% of the retail, hospitality and leisure business rates relief. Retailers with a larger store, a number of sites or those operating a chain will receive limited benefit from these mitigations, and this will impact their ability to invest and to continue to offer services in the communities they serve.
The following additional measures were announced by the Chancellor in the Budget speech today:
Flat rate levy on vaping liquids from October 2026 of £2.20 per 10ml
Fuel duty frozen and the 5p cut extended for another year
A new commitment to tackling shop theft and funding directed to tackling organised gangs
Lowman continued: “The Chancellor’s commitment to tackling shop theft will be warmly welcomed by our members, but they are interested only in action and in crime against their stores and their colleagues being tackled effectively. We stand ready to help implement a new, and better-funded strategy to stop shop theft, abuse and violence against our members.”
SPAR UK has announced the appointment of Michael Fletcher as its new managing director.
Fletcher spent 22 years at Tesco plc, where he held numerous senior commercial roles in the UK, Ireland and Asia. He joined Co-op Retail in 2013 where he held the position of chief commercial officer before moving on to become CEO of Nisa Wholesale, a role he held until 2022.
Since leaving Nisa, Fletcher has taken on several non-executive director and board advisory roles. He is also the founder and chief executive of Sleet Brush Limited, where he focuses on designing and implementing innovative solutions to complex retail and wholesale challenges.
“Michael has outstanding credentials in commercial, retail and FMCG sectors, with experience across various trading environments,” Nick Bunker, non-executive chair, SPAR Food Distributors Ltd, said.
“His professional capabilities and high standards consistently drive excellent business performance and operational resilience. We are delighted with his appointment and look forward his lasting and positive contribution to the SPAR business.”
Fletcher added: “SPAR is a globally recognised and respected brand, and I am thrilled to join the team. I look forward to supporting the ongoing strengthening and development of the SPAR proposition in the UK.”
Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.
A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.
Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.
Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.
Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.
The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.
According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.
The ONS added that this figure was the highest since records began – in March 2003.
“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.
“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.
“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”
Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”
According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.