How to analyse local competitor stores

To find a profitable gap in your local market, you need to become a detective. The best way to start is by visiting every potential competitor near your planned location and systematically gathering intelligence. Before you even step outside, create a simple checklist or spreadsheet on your phone or in a notepad so you can compare each shop fairly.

Why This Matters

This isn't about copying what others do. It's about finding what they don't do, or what they do poorly. Your goal is to identify a unique selling proposition (USP) – the specific reason customers will choose your shop over an existing one. This research is the foundation of your business strategy, influencing your product range, pricing, and even your opening hours.

Your Competitor Checklist

When you visit each competing convenience store, supermarket, or newsagent, focus on gathering these key details:

• Product Range: What brands do they stock? Do they have fresh produce, a food-to-go counter, or a bakery section? Are there obvious gaps, like a lack of vegan options or locally sourced goods?
• Pricing: Note the prices of 5-10 key items that you also plan to sell (e.g., a pint of milk, a loaf of bread, a popular chocolate bar). Are they known for being cheap, or do they offer premium products?
• Promotions: What deals are they running? Look for meal deals, multi-buy offers, or loyalty schemes. These are powerful tools for attracting customers.
• Opening Hours: When do they open and close? Is there a period, perhaps early in the morning or late at night, when the area is underserved?
• Customer Experience: What’s the general vibe? Is the shop clean and well-lit? Are the staff friendly and helpful? How long are the queues at peak times? Is it easy to move around the store?
• Unique Features: Do they have something that makes them stand out? This could be a coffee machine, an in-store post office, a parcel drop-off point, or a particularly good selection of wines.

Putting It All Together

Act like a regular customer. Buy a couple of small items to experience the service firsthand. Be discreet when taking notes or photos. Once you’ve visited a few competitors, organise your findings in a simple table or spreadsheet. This will give you a powerful, at-a-glance view of the local market.

By comparing your competitors side-by-side, you can spot the opportunities. Perhaps nobody offers fresh pastries in the morning, or all the local shops close before commuters get home. This is the gap where your new business can thrive.