Research from Vodafone and lottery provider Allwyn reveals that young adults want more online and digital tech at their local corner shops, even more so than lower prices.

About half of young adults in the UK would like to see improvements in the use of digital technologies at their local corner shop, according to the research conducted as part of Vodafone and Allwyn’s Future of Retail report, highlighting the ways technology has given retailers a competitive advantage during the pandemic.

Last year, Vodafone was announced as a partner to Allwyn as it bids for the UK’s fourth National Lottery licence. Allwyn operates lotteries in numerous countries across Europe.

The research found that half of millennials and Generation Z care more about increased digital technology in high street shops than prices. Half (50%) of under 34-year-olds would like to see digital improvements at their local corner shop but only a third (31%) said they’d prefer to see lower prices.

The survey, carried out by research agency Context Consulting on behalf of Vodafone and Allwyn, found local retailers need to update their tech urgently if they are going continue to attract younger shoppers. The poll of 1000 adults also found that more than half of respondents (51%) said they thought their local corner shop had no digital technology whatsoever.

The most common forms of digital tech being used by local corner shops according to the research were web sites (19%), social media (16%) and self-service checkouts (15%). However, only 12% of customers said their local store had a mobile app or loyalty scheme and only 9% said they were aware of online collection ordering services.

There is an opportunity for local retailers to upgrade their use of digital technology to continue enticing younger customers, and provide a smooth and efficient service, the research concluded.

The research did identify a small group of digital innovators whose businesses are benefitting from the use of digital technology, including Mosi Patel, the owner of two independent corner shops in Greater Manchester. Patel has invested in the development of his own app which offers delivery services and allows him to promote targeted offers to customers based on their shopping history.

He also uses social media to connect with customers to ensure he is always able to deliver the best service. Following online feedback from his customers about food cooling down during delivery, he had bespoke heated plates fitted into his four fully electric delivery vehicles.

“We have invested in developing our own local delivery app,” said Patel of Premier Heyside. “It was a significant step for us, based on the feedback that delivery was very popular with our local community. We may not have 100 drivers, but you get a better service. We will always know our communities better than the big brands, and we must not leave the use of customer-facing tech to them. I’d encourage everyone to seriously consider upgrading. It is important to make sure your shop is only one click away.”

Nick Gliddon, business director at Vodafone, added: “The shift to digital during the pandemic created new opportunities for small businesses while also presenting many new challenges, especially for the convenience and local sector. A strong foundation of digital technology and skills is now more than a nice to have, it is crucial for small business owners who want to compete and succeed now. We want to ensure small business leaders have access to the right tools and guidance to confidently navigate the digital environment. The corner shop has been one of the most resilient outlets on the high street; we want to ensure that remains the case, and this group of entrepreneurs stays ahead of the competition.”

And Justin King, a member of the Allwyn advisory board and former Sainsbury’s chief executive, said: “It is clear that Covid has accelerated a shift in consumer habits towards the relative convenience of smaller local shops. However, those that are thriving are also embracing the opportunity of digital, be that through online apps and deliveries, or in-store innovations. The upside is significant, but fail to innovate and invest and you will struggle against increasing competition from a combination of dark stores, super fast delivery and ever more locally orientated big chains. Small shops must embrace their natural advantage in being nimble and dynamic.”