Scotland’s convenience retail sector faces another challenging year in 2027, as soaring operating costs, relentless retail crime and mounting regulation pile pressure on local shops. However, significant opportunities remain for retailers willing to innovate, diversify and strengthen their customer offering.
Ahead of its Annual Conference on Wednesday 18 November, SGF is highlighting the significant pressures facing Scotland’s 5,228 convenience stores, which support 49,000 jobs and provide essential services to communities across the country.
Rising employment costs, business rates and energy prices continue to squeeze already tight margins, while retail crime is placing an enormous financial and personal burden on retailers and their staff.
The sector also faces a wave of regulatory change in 2027, including the generational tobacco sales ban from 1 January and the introduction of the UK Deposit Return Scheme (DRS) on 1 October.
Despite this, Scottish retailers consistently demonstrate their resilience and SGF believes there are significant opportunities for those willing to innovate, invest and adapt to changing consumer expectations, particularly through food-to-go, local produce, digital technology advancements and new customer services.
SGF Chief Executive Dr Pete Cheema OBE said: “Scotland’s convenience retailers are being squeezed from every direction. Rising costs, relentless retail crime and an ever-growing regulatory burden are putting enormous pressure on businesses that are already operating on wafer-thin margins.
“There is a limit to how much more local shops can absorb before jobs, investment and ultimately the survival of businesses are put in jeopardy. Government must recognise that continually piling additional costs and obligations onto retailers is simply not sustainable.
“However, we must not lose sight of the tremendous opportunities within our sector. From food-to-go and Scottish produce to digital innovation and new services, retailers who embrace change can strengthen their businesses and remain at the heart of their communities.
“Our Annual Conference will bring together over 400 industry leaders, retailers and policymakers to confront these challenges head-on and explore the opportunities ahead.
“2027 will be a pivotal year for Scottish convenience retail. We need government to stop adding to the burden and start creating the conditions that allow our local shops to invest, compete and thrive.”
