Ian Hall, CEO, CCS McLays
In today’s challenging retail environment, UK retailers are grappling with a perfect storm of pressures. Rising operational costs - estimated at £5.6 billion this financial year - are squeezing margins tighter than ever. This surge is equivalent to the cost of 195,000 full-time retail jobs, driven by increases in business rates, minimum wages, and employer National Insurance contributions. At the same time, changing consumer behaviours and expectations demand faster, more personalised, and seamless shopping experiences, whether in-store or online. Additionally, increasing competition from both digital-first brands and discount retailers is forcing traditional shops to constantly innovate and optimise.
In this context, while many retailers focus on cutting headcount or investing in new technologies like AI, one of the most critical - and often overlooked - drivers of operational success remains the effective procurement and management of non-core consumables, also known as goods not for resale (GNFR).
The hidden impact of non-core consumables in retail
Non-core consumables include a wide range of essential in-store items such as hangers, garment display accessories, carrier bags, cleaning supplies, and packaging materials. Although these products do not generate direct revenue, they play a critical role in daily store operations, impacting everything from visual merchandising to customer service and hygiene.
However, these consumables often escape strategic attention, leading to inefficiencies from over-ordering, under-stocking, excessive deliveries, and administrative burdens on store teams. For example, some store managers may face as many as 15 deliveries per month from multiple suppliers, creating logistical challenges and taking valuable time away from frontline customer service.
In 2024, nearly 170,000 retail jobs were cut in the UK, alongside over 13,500 store closures. These statistics starkly illustrate the vulnerability of the sector to economic pressures and highlight the urgent need for retailers to uncover operational efficiencies without further destabilising their workforce or customer experience.
Why retailers must prioritise in-store consumables optimisation
Focusing on the effective procurement and management of non-core consumables offers a range of strategic benefits. Consolidating suppliers and standardising products across stores enables retailers to unlock bulk purchasing discounts, reduce duplicated administrative tasks, and minimise waste. This financial discipline translates into substantial cost savings that directly support tighter margins.
Beyond cost, streamlining consumables provisioning improves operational efficiency by reducing the time store workers spend on stock management and administrative duties. This allows staff to concentrate on core activities such as sales, customer engagement, and visual merchandising, which ultimately drive footfall and customer loyalty.
There is also a growing sustainability imperative. Retailers increasingly seek to reduce their environmental impact, and optimising consumable usage presents a clear opportunity. By choosing eco-friendly materials, reducing excess packaging, and consolidating deliveries, retailers can shrink their carbon footprint and align with consumer and regulatory demands for responsible business practices.
Finally, a well-managed consumables supply chain enhances business agility. Retailers better equipped to respond swiftly to demand fluctuations, supply chain disruptions, or new market trends are more resilient in the face of economic uncertainty.
Steps retailers can take to strengthen consumables processes
When it comes to in-store consumables, insight - not assumptions - drives better performance. A basic audit won’t cut it. What’s needed is a thorough, collaborative review of current practices that not only highlights what’s working but uncovers opportunities to do things better. This often brings to light valuable feedback from customer-facing staff who know the day-to-day challenges firsthand.
The process should begin with an honest evaluation of current delivery, storage, and ordering practices. From there, retailers can map out a tailored roadmap aligned with operational needs and business goals.
A comprehensive review should therefore involve the following steps:
1. Start with the right voices
Begin by gathering key stakeholders - from head office teams to store managers - to share insights. The goal is to understand the unique rhythms of the business, what’s effective, and where there’s friction. This collaborative step often surfaces overlooked issues and unlocks ideas that drive real improvement.
2. Evaluate current consumables use
Dive into how consumables are used, managed, and replenished in-store. Look at usage patterns, performance metrics, leakages, and staff feedback - alongside environmental considerations - to get a full picture of efficiency and opportunity.
3. Pinpoint cost-saving opportunities
Analyse purchasing practices to uncover areas for financial gain. This includes evaluating sourcing strategies, pricing models, supplier terms, and billing processes. Consolidating spend and tightening controls over miscellaneous purchasing can lead to significant savings.
4. Improve inventory and stock processes
Streamline inventory management by enhancing product quality, reducing waste, and improving visibility with digital ordering systems. Smarter stock control ensures the right products are in place at the right time, boosting operational flow and reducing unnecessary spend.
Building retail resilience through consumables health checks
A consumables health check provides a detailed, store-by-store review of how non-core items are sourced, stored, ordered, and used. This assessment not only uncovers cost-saving opportunities but also uncovers inefficiencies that impact staff morale and productivity.
For retailers with multiple locations, consolidating deliveries can significantly reduce administrative burdens and carbon emissions. Empowering store teams with optimised stock management also frees them to focus on delivering excellent customer experiences, creating a virtuous cycle of improved operational performance and business growth.
Unlocking hidden value for long-term success
In 2025 and beyond, retail resilience hinges on more than just technology or workforce adjustments. Optimising the procurement and management of non-core consumables is a practical, often untapped route to improving financial health, operational efficiency, and sustainability.
By pausing to examine these fundamental aspects of store operations and investing in tailored solutions, retailers can unlock hidden value, empower their staff, and build a more agile and competitive business ready to thrive in a dynamic and competitive market.
