Meeting of the Parliament 12 January 2016
I, too, wish to congratulate the Scottish Grocers Federation on the launch of the first ever local shop report, produced in conjunction with the Association of Convenience Stores. We must emphasise the word “convenience”. As ever, the rich amount of detailed information provided is incredibly useful for us MSPs in order to know how the sector is doing, what challenges it faces and what we can do to help. We are probably all quoting the same statistics, because it is a large range of information in a targeted, concise report, which is a welcome development. I am sure that colleagues across the chamber agree that the report paints a positive picture of the independent convenience store sector, and those entrepreneurs deserve our praise. They also deserve our help, which is why we should examine the areas in the report in which challenges remain, so that we know how to help.
The report highlights the welcome news that, as we all know from the statistics that we have heard, we have the highest concentration of convenience stores in the UK, with 5,602 in Scotland. The figure of one shop for every 946 people is impressive proof of the breadth and commitment of the sector to serving our communities. We do not have to look very far to find yet further proof of small retailers’ commitment, as 29 per cent of Scottish shop owners work more than 70 hours a week, and 22 per cent take no holidays during the year. That is an incredibly strong work ethic and something that they should be congratulated on, although it is important that options for more flexible working should also be available if desired.
Although longevity is itself impressive, as evidenced by the fact that 26 per cent of shop owners in Scotland have been in the trade for more than 25 years, it is imperative that we look forward to where economic growth and the jobs with it will come from in the future. The answer of course is entrepreneurism. In that regard, the news in the SGF’s report is again impressive. Some 65 per cent of people who own or run a convenience store in Scotland are the first person in their family to do so, and 57 new shops have opened in the past year, which hints at exactly the sort of start-up drive that we need in this country. Furthermore, there is an encouragingly large representation of young people in the sector, with 16 per cent of the managers being 30 or under.
The ability to drive economic growth in the future is, of course, tied up with the embracing of technology. Scottish shops have certainly been active in this area, with 23 per cent having a Facebook account, 20 per cent having a Twitter account and around a third offering contactless payments. As a businessman and frequent customer of local shops, I know that using technology to attract customers and make their transactions easier is key to competing with other, perhaps larger, shops, as is the personal service that those convenience stores give. As George Adam said, gone are the days when people used to know one’s name when one went into their shop, although that still happens in certain areas.
There appears to be a bright future ahead for convenience stores in Scotland, but we cannot be complacent about delivering on that potential. I am sure that grocers do not need politicians to tell them which technologies to adopt to help their business, but it is important that we remain aware of any issues facing small business owners that might prevent them from making the most of technological opportunities in the sector.
Finally, I would like to touch on another admirable feature of independent stores, which is their extensive contribution to their local communities. As we have just heard, over the past year, 87 per cent of those stores in Scotland were involved in some form of local activity such as charity or sports work. Time and again they have shown themselves worthy of our extensive praise and support, but the most important aspect is how that binds their relationship with local customers. That, after all, is key to cementing small stores’ place in our communities and the continued health of the sector. As the SGF’s report shows, the sector is growing in Scotland because it is providing customers with the local service that they want—that, after all, is what it is all about.
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