Try explaining to anyone under the age of 30 that there was a time when supermarkets closed at 6.00 pm each weekday, around 1.00 pm on Saturdays and didn’t open at all on Sundays. But until the relaxation of trading laws in the mid 1990’s that was the way it was. Thankfully there were thousands of family run corner shops and off licences that were open all hours supplying the basics.
Then, as supermarkets opened longer and longer hours, the corner shop had to change or die and over the years many morphed in to the professional and smart convenience stores that we know today, although regrettably many closed.
As the rate of change in the convenience sector continues to accelerate, customers are becoming more demanding both in terms of what they buy and where they buy it from.
Frictionless retail has been around for some years and typically involves the use of technology, such as AI, mobile apps and contactless payment systems, to streamline transactions and dispense with physical checkouts. The goal is to create an experience that allows customers to get what they need quickly and without stress, typically on a 24/7 basis. Controlled access and knowledge of customer preferences also addresses issues such as age verification and creates possibilities for tailored promotions and flexible pricing aimed at individual customers.
Micro convenience stores are, at 300 sq ft about the same size as large shipping containers. The are pre fabricated with door entry and exit systems, AI cameras, smart shelving and refrigeration and can be easily sited on any suitable hardstanding with access to a power supply.
The principle of frictionless retail has been adopted for micro convenience stores in a number of European countries already, most notably by Galp, a fuel service station operator in Portugal and OKay, the subsidiary of a large Norwegian food retailer, but the stores have yet to arrive in the UK.
With frictionless retail, the only need for staff is to replenish product, clean the store and deal with one off issues, many of which can be handled remotely. Lower staff costs have an immediate effect on the bottom line and the stores should be more profitable than traditional larger convenience stores. The stores have the added advantage of being portable so if one location proves not to be successful it is a relatively inexpensive proposition to move it somewhere better.
Obvious sites are where there is a high density of potential customers who require convenience products at any time of the day or night. These include include warehousing and distribution parks, office centres, university campus’s and residential areas where they are no local shopping facilities. There is also potential for pop up stores at festivals and events where flexibility and ease of deployment is key.
Frictionless retail is not just a trend; it represents a fundamental shift in how consumers shop. For the micro convenience store sector, adopting these technologies can lead to significant benefits, including enhanced customer experiences, increased efficiency, and greater adaptability. As consumer expectations continue to rise, micro convenience stores that embrace frictionless retail will be well-positioned to thrive in an increasingly competitive market. By focusing on convenience and efficiency, these stores can meet the needs of today’s busy shoppers and secure their place in the future of retail.
At CommProp Solutions, we believe that Micro convenience stores are an exciting, innovative and flexible way for operators to maximise sales and profitability and lead the field in a concept that is new to the UK.
We can advise on locations, secure deals with landlords and site owners and see sites through to complete.
Please contact us for an initial no obligation discussion