Innovation from the midst of crisis

Even in the darkest days of the pandemic, when businesses could have been forgiven for simply battening down the hatches, many were out there planning and innovating to come up with new designs and concepts to better meet the needs of their retailers and ultimately their shoppers. Many of those efforts are now coming to fruition with the launch of a raft of new formats.

Undaunted by the lack of a face-to-face retailer exhibition in 2020, Nisa unveiled a new concept at its virtual conference last October, aimed at stores of up to 1,000sq ft. Nisa Express includes three format options – forecourt, food-centric and essentials – each with a design and range tailored to its specific market. Other new formats include a fledgling fascia from Parfetts aimed at off-licence retailers. The Local will sit alongside the wholesaler’s growing Go Local symbol group and retailer club, with the launch said to have come following extensive research among off-licence retailers to identify how their experience could be improved.

Bargain Booze recently added two new concept stores to its portfolio, Tippl and BB’s, a move it described as part of its “future-proofing” initiative. The trial BB’s outlet is based on the established Bargain Booze concept, but will offer meal solutions for the evening as well as a more-premium range of alcohol. Tippl is a variant of Wine Rack and will feature “meal solutions” for the evening, more-premium drinks and may also include on-site food at some point.

The appetite for these and other formats has been fuelled in part by the upsurge in trade seen by many convenience retailers during the pandemic, who have been investing the extra cash generated into new premises or rejuvenating their existing sites. Retailers have also been able to take advantage of rates and VAT holidays, Bounce Back Loans and other financial incentives, while cash and carries say they have been helped by the added footfall into their depots at the start of the crisis in particular, which allowed them to showcase their symbol/fascia offers to a much wider audience.

All this comes against the background of sustained growth within the convenience sector. The UK Convenience Market Report Update 2020 from Lumina Intelligence, released at the end of September, forecast the market would grow by 9.2% or £3.8bn in the 2020 financial year, with the symbol sector up by 10.9% and unaffiliated independents on 9.9%. Although that growth is set to normalise again in 2021, retailers now have the perfect opportunity to cement their position within the local community, drive loyalty and maintain footfall. Having a serious think about which symbol group, franchise or fascia might be right to help them achieve that goal will undoubtedly form an important part of the equation.