Maureen Hinton, Lead Retail Analyst from Verdict, reflects on whether there are any solutions to keep independent retailers on the high street.
Independent food retailers face many challenges, not least their lack of scale, low margins and high costs. Tapping into local demand and differentiating from the competition is harder to do in food & grocery. Those retailers that have managed to do this, such as Boots, were already well established, have some scale and have built on their heritage; for newcomers or single independents it is much harder.
Joining forces with other independents and becoming part of a buying group is one solution, and using that power to develop an offer that fulfils what consumers want now. Food-to-go is one such solution, e.g. resisting the onslaught of costly coffee chains with in-store coffee machines, basic pastries and other baked goods, or providing hot and cold food-to-go counters to cater for breakfast, lunch and evening meal solutions.
