Community Shops: The Better Business Model James Alcock: Community Retail Manager Plunkett Foundation

Community Shops: The Better Business Model

James Alcock: Community Retail ManagerPlunkett Foundation

Overview

• Introduction to Community Shops

• Best Practice from Kirdford, Sussex

• Best Practice from Brockweir and Hewelsfield, Gloucestershire

• Further support available

• Group Discussion

01993 810730 [email protected] www.plunkett.co.uk www.plunkett.uk.net

Introduction• Definition: Shop which is owned and/or managed by the community, for the community

• Legal Structure: Industrial and Provident Society for the Benefit of the Community

• Start-up Capital: £20,000 - £200,000+

• Premises: Original shop premises, New build, Portable Buildings, Church, Village Halls

• Stakeholders: 150 members, 7 committee members, 2 employees, 30 regular volunteers,

• Customer base: Immediate population, plus passing trade

• Turnover: £7,000 – £900,000 (avg: £130,000)

• Year Started: 1984

• Stage of Development: 271 shops trading, opening at a rate of 20 per year

Better Resilience

• 96% success rate

• Increasing rate of shop openings

• 400 village shop closures each year


Better Governance

• Robust legal structures: genuine community ownership

• 65% IPS Bencom: Prioritise community benefit

• Democratically elected committees: answerable to the community

• Avg of 150 members: resource pool

* Caveat CLG and CICs

11%

4%

6%

64%

6%

9%

Other

Unincorporated

Community Interest Company

Industrial and Provident Society for the Benefit of the Community

Company Limited by Guarantee

Co-operative Society


Better Finances

• Community Shops are (or should be) profit focused!

• Collective turnover: £32million pa

• Turnover range: £7,000 - £900,000

• Average Net profit: £3,654

– Reduced staffing costs - Volunteer hours Avg 30 – saving of £6.2m– Favourable terms on other overheads– Trading for community not commercial purpose– Inclusion of Share Capital: e.g. Dunsfold and Tewin

• Local Food – £1 = £1.76 to local economy


Better services

• Retain essential retail service

• Local Food: village shops number one platform to purchase local

• Safeguard Post Office services: 56% have Post Offices

• Cafes: 40% have cafes

• Community Spaces: 15 in Village Halls, 5 in Churches, 3 in Pubs


Better communities and Lives

• Social value of community shops• Inclusion of cafes, volunteers, events

• Support the elderly, less mobile and more vulnerable

• Active citizens, supporting citizens

• Profit reallocated for community use: 22%• £197,754 annually

• Volunteer opportunities: 30 volunteers

• Employment: 1.8 employees

• Training: all ages


Better Environmentally

• Less Travel

• Reduced food miles

• Influenced by modern day behaviours and values e.g. Thorncombe– Food re-use– Composting– Recycling– Bag loans


Kirdford

Gutted

Fit Out starts – mid April 2010

Late Evening 14th May 2010 – eve of trading (soft opening)

5th June 2010Official Opening

Chichester Observer Community Awardfor Best Shopworker

CLA/AiRSSuccess in Rural Business Award 2011

South East Region Winner 2011

Creating ownership

Involve your community

• Regular dialogue• Newsletters• Emails• Events• Press coverage• Website• Facebook• Twitter

Create ownership and pride

How do you reach and communicate with all sections of your community?

Support Available

• Central Support Service– Telephone, Email, Face-to-Face

• Adviser Network– Community Advisers, Specialist Advisers and Mentors

• Online Community Shop Network– Forum, Directory, Tools and Resources

– Advice Sheets

• Legal structures advice and registrations service– Community Shares and Fundraising

• Membership Services– Representation and Purchasing

• Press and Publicity.

Summary

Community shops:

– Are more resilient and financially robust

– Promote inclusively

– Address social exclusion

– Support the local economy

– Reduce carbon footprint


Documents

Community Shops: The Better Business Model James Alcock: Community Retail Manager Plunkett Foundation