• 26% of convenience retailers reported that sales had fallen significantly

  • City centre stores and those near transport hubs were the most likely to have been negatively affected 

 

While the coronavirus has resulted in a major sales boost for the convenience sector overall, a quarter of c-store retailers have reported a large decline in sales over the past two months.

This is one of the stark findings of the latest Covid-19 Impact Study, released today by the Association of Convenience Stores.

The survey of convenience retailers found that while two-thirds said they had seen a sales increase since the UK went into lockdown in March, 34% said their sales had fallen, while 26% reported that sales had fallen significantly.

The trade body said forecourts, city centre stores and those near transport hubs were the most likely to have been negatively affected as footfall was eroded due to the lockdown restrictions and the government’s stay at home messaging. Neighbourhood and rural stores were most likely to have seen an increase in sales.

Despite this high number of retailers experiencing falling sales, just 4% said they had received financial help via the government’s Coronavirus Business Interruption Loan Scheme. A further 8% said they had applied for a loan but had not received any money.

Convenience retailers can also apply for a cash grant from their local authority of up to either £10,000 or £25,000, depending on whether they are eligible for small business rate relief or not. Half of retailers said they had received a grant, 23% said they had not had a grant yet but had got information on the scheme from their local council, while 21% said they had not heard anything from their council.

“Local shops have done a phenomenal job in adapting their businesses to support their communities during the lockdown,” said ACS CEO James Lowman. “Retailers have introduced social distancing measures to keep customers and colleagues safe on very short notice, and new services like home delivery have ensured that vulnerable people, especially those in rural and isolated areas, can still get essential groceries. 

“There are, however, two sides to the story in our sector. There are thousands of stores that have seen business drop significantly because of where they are, so it’s essential that those businesses take advantage of all of the government support that is available to them.”

The poll also reinforced the issues convenience retailers have been having maintaining availability during the crisis, with the general feeling in the sector that suppliers have prioritised the major supermarkets when it comes to allocating stock. In total, 97% of retailers said supply had been affected during the crisis. Almost half (46%) said supply had been impacted to a large extent, 37% said it had been hit to a very large extent and 14% said there had been a small impact.

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