DOWNLOAD THE REPORT HERE
The 2025 Local Shop Report has revealed that despite a slight increase in the number of convenience stores trading in the UK to 50,486, the number of jobs that they provide has fallen from 445,000 to 443,000, the amount invested by retailers has fallen by £100m from £1bn to £900m, and the total projected sales this year has fallen to £48.8bn, from £49.4bn last year.
Key highlights from this report include:
• 71% of stores are run by independent retailers (either unaffiliated or as part of a symbol group)
• The total value of sales for 2025 is forecast at £48.8billion and the convenience sector is expected to grow to £53.7billion by 2028
• 32% of customers know the people running and working in their local shop very well or quite well
• 80% of convenience stores have been involved in community activity over the last year
Speaking on the launch of the report, ACS chief executive James Lowman said: “This has been an extremely challenging year for local shops as the cost of doing business has risen significantly while sales have stagnated due to fierce competition from discounters, supermarkets and other retailers. These figures should serve as a warning to Government that we cannot continue taking the brunt of additional costs and other burdens without the impact being felt by the communities that these essential stores serve.”
Lincolnshire Co-op’s Chief Operating Officer Steve Leach said: “We see our stores as being a hub of the community, and we’ve long provided a range of services alongside our convenience offering – post offices, pharmacies and even three community libraries. We’re now focussing on bringing more into our outlets to give shoppers additional reasons to visit us, increasing footfall. These include new services, like In Post lockers and laundrette facilities, but also an innovative product mix – from viral freeze-dried sweets and gifting bays featuring an array of local products, to high-quality curries which provide a restaurant experience at home.”
Londis retailer Natalie Lightfoot said: "Becoming a community focused store is not only a moral choice but it is a commercial strategy. We all can sell the same stock but what sets us apart is the feelings we create in our community to be that of a sense of togetherness and it builds strength that pays back in loyalty. The varying community initiatives and events we build helps reinforce people’s choice to shop with us. They see and appreciate the effort."
One Stop retailer Priyesh Vekaria said: “There are lots of challenges coming for the business in areas like the National Living Wage, National Insurance increases and the Tobacco and Vapes Bill, but these are not directly within my control. I’ve taken the decision to mitigate the impact of these challenges by investing in areas that will pay back for the business over time.
“Investment isn’t just about areas like technology - using AI to enhance the effectiveness of age restricted sales, stock management and CCTV - it’s also about making smart decisions on who you invest your time with to be your symbol or franchise partner, as this relationship allows us to focus on building the business while they support on the day to day operations.”
The full 2025 Local Shop Report is available here.
