The rise of the convenience store has been the one bright spot in a fairly dismal retail outlook, just over six months ago new forecasts from IGD predicted that the UK convenience market is set to grow by £6.9bn in the next five years, to reach £48.2bn by 2024. No one could have predicted then, however, exactly how the grocery landscape would change in 2020 and the essential lifeline community retailers would be providing for their local customer base.
The challenge now is two-fold – how these retailers can serve their customers in the current environment, but equally importantly, how they can keep their businesses going.
Keeping the ship afloat
Cashflow is important to keep every business going, most profitable businesses fail due to cashflow issues. Over this period smaller retailers should spend time understanding which bills need to be paid and which ones can be delayed. Ask for payment extensions where suppliers can provide it, it is in their interest for each retailer to stay in business. Minimise discretionary spending where possible this could be marketing, staff time or sponsorship deals.
The Government has been quick to suspend business rates and implement a Coronavirus Business Interruption Loan Scheme. There have also been announcements on Statutory Sick Pay and insurance. Keep on top of the new announcements from the Government here as the government grants will help take the edge off any cashflow situations.
Read the full article on the Egremont Group website