Your Local Neighbourhood Retailer

This is a large environment. It adds up to almost half of all grocery outlets and includes all of the following:

• Confectionery, Tobacco and Newspapers (CTNs)
• Convenience Stores and Off Licences. These are either independently owned or operated as part of a symbol or fascia group
• They include 14,630 symbol outlets and close to 22,000 independent outlets[1]
• Typically, these outlets tend to be under 3,000 sq. ft. in size
• Soft Drinks account for around 6 - 8% of all Neighbourhood sales[2]
• Alongside bread, Soft Drinks are the sixth most common purchase in customers' baskets behind confectionery, tobacco, milk and newspapers[3]
• To purchase something to eat/drink now is the number one reason to visit, followed by top-up shopping[4]
• Availability remains the shoppers' key concern. Shoppers say that 51% of failed purchases are due to out-of-stocks, with 62% of those saying they would either go without or buy the item elsewhere[5]
• 74% of Soft Drinks purchases are drunk within 2 hours[6]
• Energy is now the second largest Soft Drinks sector and is also the fastest growing][7]

Although the retail environments may differ within Neighbourhood, the drivers we've identified apply to all stores.

Availability

Out-of-Stocks remain the biggest challenge. They cost retailers money and, in many cases, customers too. The best advice is to stick with the winners and always avoid stocking too many products.

'On the Go'

As the name suggests, this driver is all about providing shoppers with a quick and easy Soft Drinks solution whilst they're on the move.

Tune into the needs of younger shoppers

They are keen to try new things, and are key to driving new trends. They form a key part of the Soft Drinks consumer and, as they are always on the move, they are frequent customers in this environment.

Drinks with Food

'Eat/drink now' is the number one reason for shoppers visiting your store - so why not provide them with the opportunity to do both?

Energise your sales

Energy drinks are the fastest growing sector, so it's important to ensure you have a good range of the best selling brands in stock and in the chiller.

[1]Estimates based upon IGD Research, 2009
[2]IGD The Evolution of Convenience Retailing, 2009
[3]HIM CTP, 2009
[4]Project Walkabout, Kantar Worldpanel, 2009
[5]HIM CTP, 2009
[6]HIM CTP, 2009
[7]Nielsen, Independents & Symbols, latest 52 w/e 16.01.2010