This document discusses challenges and opportunities for convenience stores and the aging population. It notes that while over-65s account for 19.8% of convenience store shoppers, older customers value personal service and reliability over promotional deals. Retailers face challenges in store accessibility and offering a broad product range. The government also faces challenges in supporting local retailers through planning policies and managing rising business costs and parking issues. Moving forward, the document suggests retailers better meet older customer needs to boost business, and governments maintain local shops to aid community sustainability.

1. Meeting the Needs
of Local People
James Lowman
Chief Executive
ACS/Age UK Real Lives Real People
3rd July 2012

2. Agenda
• ACS and the convenience sector
• Older People – Important Consumers
• Challenges
 for Retailers
 for Government
• Way Forward

3. 33,500 Members

4. What is a convenience store?

5. A Sector in Sales Growth
45 42.3
40
32.4
35
30
25
20
M
V
o
b
u
n
C
£
e
a
k
v
15
c
r
t
)
(
l
i
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f
Source: IGD Research, 2010
Source: Institute of Grocery Distribution (igd.com)

6. But There Are Fewer Stores
Source: William Reed Knowledge Store 2011

7. Large Supermarkets focused on
growing small format stores

8. Age profile of Convenience
Stoppers
Over 65s account for 19.8% of shoppers in c-stores (18% of
population)
Source: him! Convenience Tracking Programme 2012

9. Older People Account for more
than 25% of Customers in

10. • Over 65s spend £4.67 on average per visit
• Over 75s spend £5.19 on average per visit
Source: him! Convenience Tracking Programme

11. Older Customers are the most
frequent visitors
• 32.5% of over 65s and 40% of over 75s customers
visit their local c-store every day
Source: him! Convenience Tracking Programme 2012

12. Distance travelled to store
• 39% of older customers have travelled less than ¼
mile to store
Source: him! Convenience Tracking Programme

13. What Older People are coming
to buy
16-17 18-24 25-34 35-44 45-54 55-64 65-74 75+
Treat Top Up Top Up Top Up Top Up News News News
Food to News News News News Top Up Top Up Top Up
Go
Top Up Food to Food to Food to Food To Treat Treat Treat
Go Go Go Go
• 49% of over 65s are coming to store to buy a
newspaper or magazine
Source: him! Convenience Tracking Programme

14. What improvements do you
want to the store
• 70% of over 65s are content with what the
store currently provides
Source: him! Convenience Tracking Programme

15. What would you like to see this
shop doing in the community?
Source: ACS Voice of Local Shops Survey (May,12) & him! Convenience Tracking Programme

16. Challenges – For Retailers
ACS/Oxford Research Project - Insights on Older
Customers
•Service
 value personal attention
 dislike regular staff changes
•Dislike promotional gimmicks and offers
 Sensitive to prices especially where they fluctuate
•Like Reliability and Consistency of Range
 Knowledgeable about when stock is delivered – such as best
day to get fresher stock.
•Suspicious of Supermarkets
 But they do use them
Source: ‘Economic and Social Role of Local Shops Project’ ACS/UoO www.acs.org.uk/research

17. Retailer Challenges – Access
• Buildings
 Older buildings
• external access problems
• Narrow and crowded layouts
 Disability Discrimination Act
• places requirements on retail premise owners
• to conduct an access audit
• not necessarily to make changes
• Store layout
 products can be hard to see and reach on
shelf
 product packaging

18. Retailer Challenges – Kaiser

19. Challenges for Retailers –
Range
1872 lines 4122 lines
Source: ACS Evidence to the Competition Commission (2006)

20. Challenges for Retailers
• Post Offices
 4000 post office outlets in convenience stores
 Transformation Programme - 6,000 over-the-counter POs by 2015
Pros Challenges
•More Post Offices in •maintain full or right
Communities range
• Extended opening •Privacy for customers
hours •Speed and quality of
• More commercially service
sustainable for PO •Commercial viability for
Limited retailers
Source: him! Convenience Tracking Programme 2012 and ACS

21. Other Services

22. Challenges for Government
• 4,500 fewer convenience stores than in 2002 (10% decline)
Source: William Reed Knowledge Store

23. Challenges for Government
• National Planning Policy
 Encourages development in existing
centres
 Prevents unsustainable out of town
development
 Encourages diversity
• Local Planning Policy
 Plan for the long term
 Consider social as well as economic
challenges
 Based on community engagement

24. Challenges for Government
Establish Partnerships Tackle Costs Smart Decisions
Support Local Retail Business Rates Car Parking
Policies

25. Way Forward
• Retailers
 Older Customers are an important part of the customer base
 Investing in better meeting their needs is good for business
 A range of challenges still to address
• Government
 Local shops are a part of maintaining independence for many older people
 Having local shops within walking distance is a key sustainability objective

26. Thanks
James.lowman@acs.org.uk
01252 515001