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By David Pinto
The Economist, that news-oriented, internationally flavored, reasonably neutral, highly regarded weekly print publication, recently explored, in print, the newest, or not so new, emerging retail format in the United Kingdom: the corner store.
What follows is an attempt to summarize some of The Economist’s observations regarding this new, or not-so-new, retailing phenomenon:
• Focusing on Denmark Food & Wine, a south London corner shop, the publication tells the reader that every December it is transformed into Santa’s Grotto. In this iteration, “about 250 parcels are scattered about the poky shop, beneath Pulp Riot hair dye, bottles of Ribena, tea bags and condoms. It is mid-morning. Another 250 packages are due at 1 p.m.”
• In Britain, continues The Economist, “corner shops have become the High Street of last resort. Post offices and banks have retreated, leaving the fiddly tasks of paying in cash and collecting parcels or benefits underserved.” Corner shops have filled the gap.
It is these services, according to the news weekly, that have helped Britain’s 35,000-strong independent corner stores stay alive. These shops are happy to offer almost any service, “provided enough customers buy a can of Diet Coke on the way out.”
Along the way, The Economist stresses the fact that corner shops have always molded themselves to fit British society. Equally significant, the merchandise these stores sell also plays a role here. “Corner shops thrive via a cocktail of convenience and vice. Once the staple business of corner shops was cigarettes, alcohol and newspapers, alongside pornographic magazines … Now, adverts for vapes have replaced posters of the Marlboro Man. At the same time, fresh produce now takes up more shelf space.”
The lesson: These shops will provide whatever someone needs whenever they need it. As well, convenience, long a staple of U.S. retailing, now commands a premium in the U.K. Indeed, trip frequency to the corner store is increasing, now just under three times a week, as is basket size. Then too, parcels are enjoying a new significance at these shops, as delivery companies increasingly drop off their supplies at these corner stores (and pay for the privilege), where customers come to retrieve them. Indeed, some of these shops, whose operating hours run from dawn to midnight, handle thousands of packages a week.
The point of all this is both simple and obvious: Opportunity invariably abounds. When one door closes, another opens. In England, independents still account for 71% of all convenience stores.
Certainly, problems remain. Minimum wages continue to increase. Contributions to national health insurance hurt. The government is fussy. New laws have already put a crimp in sales of some items which are core to these outlets.
Still, corner stores will prevail. If you doubt that, suggests The Economist, “pop down on Christmas Day. Searches for ‘convenience store’ peak during the festive week. Maybe someone forgot to buy milk.”
