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Concerns for independent delis

17th Nov 2008 - 00:00
Abstract
Some 61% of independent delicatessens have seen either static or falling turnover in the past six months, according to the latest survey commissioned by the Guild of Fine Food, the trade association for the speciality food sector.
A staggering 71% of all deli owners also said that they are currently earning an hourly rate below the national minimum wage. However the figures are quite the opposite in the farm shop sector, with 61% of operators seeing turnover increasing this year. This highlights the resilience of the local foods market despite the economic downturn. Meanwhile among delicatessens, around a fifth of all products are now sourced locally, with turnover holding up best in those delis that carry the greatest proportion of local lines. Three quarters of deli and farm shop owners say local food and drink lines that they stock have appeared in nearby supermarkets – in most cases at lower prices. But only a small minority (4.6%) say this has had any impact on their business and the majority (77%) have struck back by delisting some or all of the offending products. In addition, a quarter of delis complain of irregular deliveries. Nearly a half struggle with the limited availability or seasonality of local lines, and more than a half say they have problems with high minimum-order sizes, seasonal or limited availability and delivery of incorrect goods. While supermarkets are often viewed as the big enemy of small shops, the survey suggests the most successful fine food businesses shrug off this threat. Among delis whose sales have been rising this year, 50% see other independent stores as their closest direct competitors.
Written by
PSC Team