Author: Sarah Walker-Smith
At Anthropy UK 2025, our group CEO, Sarah Walker-Smith, chaired Plunkett’s ‘the future of rural retail’ session, where experts came together to discuss the pressing challenges and opportunities facing rural communities, the positive impact community shops have on the locals and visitors they serve, as well as the challenges these shops face to stay relevant, agile and sustainable.
The vital role of community shops
18-24-year-olds are moving away from rural areas, as employment opportunities and home affordability becomes out of reach for young people. Picturesque villages are inundated with second-home owners and Airbnbs. More than 300 banks have closed, and rural transport options have been drastically reduced, further isolating these areas.
As religious congregations decline, rural pubs close and NHS services find themselves stretched to breaking point, it’s the community shop that’s increasingly acting as a lifeline for locals.
Typically run by volunteers, community shops not only offer morning milk and eggs, but a place for work experience, to pick up prescriptions, obtain citizen advice and take part in school uniform swaps.
Case study: Atherton community shop
Laura Olver from Plunkett and Atherton Community Shop shared a firsthand account of how a rural community shop can make all the difference. In Atherton, where there is no bus service, the shop has been a lifeline for the village of 800 people. With 76 active volunteers and a turnover of £300k, the shop has maintained a strong presence despite many challenges.
However, even these resilient community shops are feeling the pinch. Wholesalers are often reluctant to work with small, independent retailers, and changing shopping habits (such as the rise of online convenience shopping) have forced many to reconsider their business models, expanding into new services and offering more than before.
Experts at the event were in agreement that losing a shop isn’t just about losing access to essentials like milk and bread; it’s about losing a critical space for social interaction and inclusivity.
So, what are the considerations for those running these essential community shops?
- Range – Offering core convenience items like milk and bread from local producers, alongside specialised products and on-the-go items through partnerships with local pubs, restaurants and independent food producers.
- Proposition – Evolving from being a traditional shop to becoming a café or social hub, where customers can enjoy hot food, drinks, and a place to connect. Many shops have pivoted from a shop with a small café, to a café with a small shop, increasing the sense of community offering.
- Services – Expanding beyond retail to offer services such as pop-up banking, prescription pick-up, and community support initiatives.
- Impact – Leveraging the community aspect by providing work experience opportunities for young people and marginalised groups, such as refugees and those with special needs.
Building a resilient rural economy
In order to ensure the sustainability of these community shops-turn-hubs, Edwin Booth raised that more needs to be done to creating networks that bring local farmers, producers, and retailers together to support the rural economy. Partnerships with large retailers, such as the co-op, could help bridge the gap and ensure that essential goods are available to rural communities.
Dame Julia Cleverdon, from the National Lottery, pointed out the potential for marketing initiatives aimed at second-homeowners to encourage them to spend locally. This demographic could play a key role in supporting rural shops if they were made more aware of the benefits of shopping locally.
For those setting up new shops, legal structures will have a significant impact on key areas, including payment of tax, control over the business and legal liability and often having a legal structure in place is integral to opening a bank account. Plunkett offers a model rules service for groups wishing to become a CBS (Community Benefit Society) where they guide community shops through the process of registration.
Creative solutions and new ideas
The conversation also explored innovative ideas for revamping rural retail. Suggestions included:
- Pre-prepared foods – As rural consumers become more time-starved, there’s growing demand for ready-to-cook meal kits and pre-prepared items, which also benefit community members who may be cooking for one or may have mobility issues that make cooking harder.
- Public procurement – Engaging with public bodies such as schools and hospitals to create a strong local food system that supports community shops.
- Engaging the next generation – Involving local young people in the delivery of essentials like milk and bread, offering work experience, and even allowing children to do their first independent spending at local shops.
- Events and experiences – Hosting wine tastings, cheese events, and other food-related experiences that build connections between producers, shops, and consumers.
Support for community shops
From the discussion, it became clear that the future of rural retail relies on collaboration. Initiatives like the Plunkett Foundation’s place-based summits, which convene community shops and centres, are critical to fostering partnerships that drive change. By working together, community businesses can diversify their offerings, expand their services, and ensure they remain integral parts of rural life.
Community shops aren’t just businesses—they are vital spaces that foster a sense of belonging, inclusivity, and local pride. With the right support and innovative solutions, these shops can continue to thrive and serve as the backbone of rural communities for generations to come.