- Recession driving consumers to their local community shop -

Strong evidence has emerged from PayPoint’s annual survey of its 13,500 independent retail agents to show that Britain’s convenience stores are being used more often and by more people in the last year. The survey provides a snapshot of retailing changes in Britain over the last year.  It shows:

• 69% of community retailers are seeing more customers through their door than 12 months ago
• 62% are seeing their regulars shop more often than a year ago
• However, 69% say their customers are not spending any more money

PayPoint’s agents represent all types of community stores in the UK from a small newsagent on the corner to a larger convenience store or mini-supermarket. What characterises them is that they consider themselves a crucial part of the local area – two-thirds (72%) believe that they are ‘cemented’ into their local community.

It is, however, clear that being a convenience retailer is tough: 64% of retailers are finding life harder than when they started and 39% say it is much harder. In addition, there are many more competitive challenges. Unsurprisingly, 46% of respondents cited the rise of large multiple stores but a worrying 36% of stores felt that Government legislation and general store running costs were a major threat to their business.

Serving the local community (33%) and the relationship they have with their customers (25%) are still the major motivations for independent retailers, while running their own business still has the most appeal for 25%.

Peter Brooker, head of corporate affairs at PayPoint, said: “As the recession has hit every corner of Britain over the last year and a half, it is heartening to see that people are using their convenience stores more. They are under constant pressure and provide a valuable and important service to their local communities.

“It is also clear that consumers have to manage their expenditure very closely. The proximity of convenience stores allows consumers to make smaller transactions for life’s essentials on a regular basis and manage their spending more effectively as a consequence.”

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Enquiries:
PayPoint Press Office
Robin Granger / Katie Buckett
Brands2Life
020 7592 1200 /
07940 422 931 / 07832 286400
PayPoint@Brands2Life.com

Peter Brooker
Head of Corporate Affairs
PayPoint
01707 600356 / 07900 418960
peterbrooker@paypoint.co.uk

About PayPoint:
PayPoint is the leading cash and internet payments company in the UK, with operations also in Ireland and Romania. It handles over £9.3 billion from almost 550 million transactions annually for more than 6,000 clients and merchants. The company operates several businesses:

• The PayPoint branded retail network numbers over 22,300 terminals located in local shops (including Co-op, Spar, McColls, Costcutter, Sainsbury’s Local, One Stop, Londis and thousands of independents) in all parts of the UK and Ireland. The terminals process gas and electricity meter prepayments, cash bill payments, mobile phone top-ups, transport tickets, BBC TV licences and a wide variety of other payment types for most leading utilities, telecommunications suppliers and many consumer service companies; 
• An ATM network which has over 2,300 ‘LINK’ branded machines across the UK, typically in convenience stores; 
• PayPoint.net, an internet payment service provider, delivers secure online credit and debit card payments for over 5,200 web merchants, linking into all major UK acquiring banks;
• PayPoint Romania, a branded national retail network of over 2,400 terminals located in local shops which process cash bill payments for all the major utilities and mobile topups and a further 2,600 terminals that process mobile top-ups only;
• Collect+, a joint venture with Home Delivery Network Limited, provides a parcel collection and drop off service at PayPoint retailers; and 
• PayByPhone, a leading international provider of services to parking authorities, that allows consumers to use their mobile phones to pay for their parking by credit or debit card.

PayPoint floated on the London Stock Exchange in September 2004 and the company’s market capitalisation at 22 April 2010 was £212 million. PayPoint is widely recognised for its leadership in prepayment systems, smart technology and consumer service.