London Mayor Sadiq Khan shook the nation in 2019 when he introduced the Ultra Low Emission Zone- arguably the biggest change to London’s roads in decades- expanding to areas beyond central London in 2021.
Now that ULEZ has extended to cover areas that home an extra five million people, we at C-Talk would just like to think about the effects it may have on our sector.
Of course, we’re aware that ULEZ was put into place to tackle the toxic air in one of the busiest cities in the UK; however, it has also thrown a spanner in the works for everyday residents on their daily commute.
According to ACS’ Local Shop Report in 2022, 57% of people walk to their local convenience store; with 36% driving, 4% public transport and 2% other (such as bicycles). 50% of convenience store workers have also been recorded to travel on foot.
Theoretically, this zone expansion affecting the lesser few shouldn’t have as much of a drastic change to local businesses as it would to bigger supermarkets located in places not as accessible on foot.
This still bodes well for us as a sector however, as it means quite a few things; 1, the community within the ULEZ zone won’t be affected as much in terms of having access to local shopping and 2, customers will most likely prefer walking to their local as opposed to a big supermarket chain where they’ll have to take a vehicle, adding £12.50 on top of their weekly shop.
On the other hand, the ULEZ zone expansion could affect the convenience retail sector in many other ways that may not be so positive; from a retailer point of view, it’s simply a nightmare.
With some retailers going twice a day to their designated wholesalers and many making separate trips at least twice a week, that £12.50 zone charge is one that can easily add up to triple the price; nevermind the price of stock replenishment and the petrol it takes to get there!
Not just that, but wholesalers who give the option to deliver will also suffer at the hands of the ULEZ charge; for every van that goes out every day is over a tenner lost.
This could lead to wholesalers limiting their output of delivery vans per day, disrupting many retailers that may rely on deliveries instead of driving to the Cash & Carry themselves.
Not only is this bad for business, but it also adds a bit of disruption; unless retailers and wholesalers are prepared to pay a minimum of £12.50 most days for transportation alone, certain changes to many retailer routines must take place, if not budgets to be reconsidered.
Regardless, us at C-Talk simply advise London retailers to keep a level head; it’s not ideal, and it’s definitely not something that benefits our sector without a catch, but looking at the positives is crucial at this time.
All we can do at this moment in time is focus on our communities and the customers we have around us; fortunately, our sector is in a position where we provide an easy choice for those wanting to shop for essentials without breaking the bank.
Staying stocked up on milk, bread, eggs and cheese would be a smart move, as shoppers usually nip out to get these things; the guarantee of being able to purchase said items would be ideal.
We also recommend checking if your vehicle is compliant to the charges HERE: https://tfl.gov.uk/modes/driving/check-your-vehicle/
It may even be worth it to look at stocking up on things you’d usually find at the supermarket, or things that your locals need that aren’t usually found at the typical convenience store; after all, a satisfied community is a happy community!
