At Jellybean, we have a deep admiration for this channel – we know its highs, its challenges, and the vital role it plays in communities. Local shops aren’t just stores; they’re hubs where people connect, shop, and live their daily lives. By understanding retailers, shoppers, and their everyday missions, we help brands and retailers grow and succeed – together.

The ACS Local Shop Report 2025 paints a vivid picture of how central local shops are to the UK economy – and just how much pressure they’re under. With over 50,400 stores across the UK, employing more than 443,000 people, convenience remains one of the most accessible, resilient and important retail channels out there. But with rising costs, crime, and squeezed investment, store owners are facing tough decisions – and that’s exactly where brands have an opportunity to step in.

the challenges convenience stores face

The 2025 Local Shop Report highlights the pinch points retailers are grappling with. They may not sound glamorous, but they matter hugely if you’re a brand trying to succeed in this space:

  1. rising costs & falling investment
    Employment costs, business rates and regulatory pressures continue to climb. Investment has dropped by £100m year on year, and sales have slipped by £600m compared to 2024. That means less money for fixtures, services, and yes – your products.
  2. employment & wage pressures
    The National Living Wage is now £12.21 an hour for those aged 21+, coupled with increased employer NIC contributions. For many stores, that means fewer staff hours, tighter ranges, and slimmer margins.
  3. crime & safety
    Shoplifting is also a huge drain. Convenience stores saw over 6.2 million incidents of theft last year, costing the sector more than £316 million annually. But it’s not only about lost revenue; it directly affects staff safety, confidence, and morale.
  4. rural realities
    For rural shops, these challenges are magnified. Many are the only store in their area, facing poor connectivity, higher delivery costs, and increased risk of crime. Yet they remain lifelines for isolated communities.

why convenience still counts

Despite these headwinds, the sector continues to show its strength and is brimming with opportunity:

  • 71% of stores are independently owned, meaning they’re agile and open to collaboration.
  • Convenience stores are consistently rated among the top three most essential local services, right alongside pharmacies and Post Offices.
  • 32% of all convenience stores offer home delivery of grocery and within independents that figure rises to 47%.
  • They act as social and community hubs:
  • 80% engaging in some form of community activity
  • 58% collecting money for a local or national charity
  • 39% donating to a food bank
  • 14% providing funding or support to a community event

In short: people love their local shops. They trust them. And they want to keep spending there. That’s good news for brands – but only if you approach convenience retail in the right way.

how brands and retailers can win together in convenience

The opportunities in convenience aren’t just about sales growth – they’re about building stronger partnerships that benefit both retailers and brands. And crucially, they don’t have to require huge budgets. Smart, well-targeted support can go a long way:

support retailer resilience
From simple, low-cost POS that makes your product easier to sell, through to digital training tools or crime-prevention partnerships, small actions can ease daily pressures for retailers while strengthening your brand presence.

tap into food-to-go and impulse occasions
Convenience is increasingly about meal missions, from grab-and-go lunches to quick dinner fixes. Brands can trial formats, flavours or pack sizes tailored to this behaviour in a cost-efficient, test-and-learn way, unlocking incremental sales without major upfront spend.

strengthen rural stores
For rural retailers, flexible logistics, smaller case sizes, and digital tools can make a big difference. By helping them serve their communities more efficiently, brands can secure long-term loyalty.

Lean into community values
Local shops are more than sales outlets — they’re community hubs. Affordable initiatives like charity tie-ins, local event support or shopper activations can build deep, lasting goodwill without breaking budgets.

how jellybean helps brands win in convenience

At jellybean, we know that succeeding in convenience isn’t just about product placement – it’s about strategic, community-first support.

we help brands:

  • Spot opportunities for activation in the convenience channel.
  • Build retailer relationships by engaging meaningfully on the platforms they use.
  • Design community-led campaigns that build trust with shoppers and retailers alike.
  • Balance brand goals with retailer needs, creating partnerships that last.
  • Navigate sector challenges with insight-led strategies.

Convenience retail may be under pressure, but it remains a powerful growth channel. With the right strategy and the right partner, brands can thrive here – and jellybean is ready to help make it happen.

Liv Martin
Latest posts by Liv Martin (see all)