Maximising Retail Efficiency with Shopworks, MD Craig Phillipson

In today’s rapidly evolving retail landscape, the ability to optimise space and meet ever-changing consumer demands is critical to staying competitive.

Shopworks, an international retail consultancy led by retail expert Craig Phillipson, offers a unique blend of data-driven insights, consumer research and innovative planning to help retailers maximise their potential. Their track record of delivering quantifiable results with leading brands in sectors such as convenience retail, coffee chains, and petrol forecourts is a testament to their comprehensive approach.

Understanding Consumer Behaviour

What sets Shopworks apart is their deep understanding of consumer behaviour. With over 25 years of research on customer shopping journeys and missions, they analyse how and why people buy—from the moment they enter a site or store to the time they exit. Managing Director Phillipson says, “Our research enables us to design spaces that not only meet customer needs but also drive higher sales. Whether it’s optimising sightlines and product adjacencies or determining the best locations for key categories, Shopworks ensures that every aspect of the shopping experience is finely tuned.”

A great example of this was their work with Costa Coffee.

Using consumer insights and data combined, Shopworks helped Costa identify sub-optimal elements in their stores that negatively impacted customer experience and sales.

They helped bust an internal myth regarding the number of seats needed in a coffee shop, using data combined with customer insight to answer the questions, ‘How many seats do I need?’ and ‘What type of seats do I need?’. The release of covers freed up space for a new longer counter (designed by Shopworks) that featured a comprehensive range of day part food items. This quickly drove up basket value through the attachment of high-margin sandwiches and pastries to cups of coffee, particularly at breakfast time.

When Costa rolled out their new store concept across its entire UK network, it attracted the attention of Cofix and other international coffee chains leading to many diverse projects, including the development of shop-in-shop formats, mall kiosks and standalone retail outlets.

Benchmarking and Future Trends

Retailers often rely heavily on past performance data, but Shopworks goes further. With proprietary data and benchmarking capabilities, they can compare similar companies across different markets and identify what “good” looks like—whether that’s fuel-to-shop conversion, car wash-to-shop conversion, or coffee-to-fuel conversion. More importantly, Shopworks helps retailers stay ahead of the curve by identifying future trends.

Shopworks has worked with brands like Oman Oil, ADNOC, and Puma Energy around the globe to enhance their forecourt offerings and improve non-fuel retail performance.

Caroline Myall, Shopworks Head of Insight explains that, “Our approach, grounded in data and foresight, ensures that the brands we work with are not just keeping up with the competition but leading the way in retail innovation.”

Proven planning principles

At the core of the Shopworks’ offer is a commitment to making every square meter of retail space count. The company’s success in site and store planning is underpinned by four key principles:

1. Equalising the value of space: Ensuring every square meter contributes to profitability.
2. Guiding customers through space: Optimizing sightlines, angles, and access to direct customer flow.
3. Exposing products to the danger of being sold: By getting the right categories in the right spaces.
4. Optimising categories and adjacencies: Ensuring complementary products are placed strategically to maximise sales.

One of their standout successes in this area comes from their work with Shell. Shopworks launched a format test for Shell’s Non-Fuel Retail (NFR) business, which resulted in impressive gains: browsing increased by 37%, food category sales rose by 49%, overall shop sales leapt by 15%, and the shop margin climbed by 19%.

As Phillipson notes, this success has led to further partnerships with Shell in over 20 markets globally, including Malaysia, South Africa, and Central and Eastern Europe.

Data-Driven Space Optimisation

Through a combination of public data, client-specific information, and proprietary research, Shopworks provides tailored solutions to optimise store layouts, site arrangements, and network strategies. Their data-driven approach enables retailers to make informed decisions about everything from the size of a café to the placement of a car wash, ensuring that each element contributes to overall profitability.

One of the tools that is gathering a lot of attention is the Shopworks Space Elasticity Model 2.0 (SEM 2.0), which uses machine learning to determine the optimal space allocation for every product category, ensuring that each category gets the space it needs to maximise sales and drive profitability.

As Marho Bateren, Head of Analytics at Shopworks explains, “It’s a powerful tool that allows retailers to reduce space in underperforming categories, safeguard and drive growth in sales of core categories whist creating room for new initiatives. In a recent project, we were able to reduce the convenience retail range by a small percentage, maintain existing sales at 90% and release a total of 45 sqM of shop floor space for innovation. This meant that the retailer was able to deliver two new food service concepts to the store, increase overall appeal and extend their reach beyond the traditional forecourt dayparts.”

Comprehensive, collaborative solutions

Shopworks is built on a foundation of flexibility and collaboration. Their team of experts spans multiple verticals—design and planning, research and benchmarking, data analytics, and shop fitting. These teams, led by the Shopworks’ Account Director Matt Kavanagh, work closely with clients to deliver a tailored approach, from initial benchmarking and customer research to final store design and layout implementation. This collaborative process ensures that every client receives a customised solution that aligns with their specific needs and goals.

Looking Ahead: The Future of Forecourt Retail

One of the most significant areas of transformation in retail is petrol forecourt convenience. With the gradual shift away from traditional fuel sales, forecourt retailers are focusing more on their non-fuel offerings. Phillipson sees this transition as a golden opportunity for retailers to deliver high-margin “Foodvenience” services, including bespoke coffee and food service, drive-thru, and deliver-to-car options.

Car wash services are also seeing renewed interest, with Shopworks identifying this as a growing trend. As Phillipson points out, “Not only are car wash services highly profitable, but they also deliver a “feel-good factor” to customers.” Subscription-based car washes are gaining traction, and Shopworks is helping retailers capitalise on this opportunity.”

In a world where consumer expectations are rapidly evolving, retailers need partners who can help them stay ahead. Shopworks delivers precisely that—data-driven, consumer-focused, and forward-thinking solutions that optimise space and boost profitability. Whether it’s transforming a single store or optimising an entire network, Shopworks’ holistic approach ensures that retailers can meet today’s challenges while preparing for tomorrow’s opportunities.

With a proven track record of success and a forward-looking approach, Shopworks continues to be a leader in helping retailers maximise their potential, from convenience stores to petrol forecourts and beyond.