A newly published survey has highlighted the important economic and social role played by the network of local shops throughout the Western Isles, employing 188 people and providing a valuable service to remote areas where access to transport and other facilities is limited.

The survey was commissioned by Western Isles Enterprise (WIE) to provide information on the health of the rural shop sector and to guide future development efforts.

There are 45 shops and mobile shops scattered throughout the Islands, providing jobs in some of the most fragile economies. The study found that this level of provision had remained constant for a number of years, despite increasingly difficult economic conditions.

The study also highlighted the potential for future development, suggesting that shopkeepers could do more to tap into the valuable tourist market, selling local produce. A recent visitor survey for the Western Isles found that tourists had a strong demand for local products.

However the report also outlined a number of factors pointing to the problems facing the area's rural shops:

• Supermarkets offering a wider range of lower priced products have had a detrimental effect on shops, particularly in rural Lewis, with the number of outlets there falling by almost a quarter between 1992-1997;
• Prices in rural shops are relatively high, largely due to additional costs such as transport;
• The seasonal nature of tourism has made shop keepers sceptical about targeting the tourist market;
• Older people feature largely in the operation of rural shops with half of those involved in and/or running the business being at least 50 years old;
• 60% of respondents to the survey said they took little or no income from the shop, relying instead on other businesses for income.

According to researchers, because some shop owners have other sources of income, such as the local Post Office, this allows the business to continue to trade and provide a service to the local community. However they also predict a gradual reduction in customer numbers if shops do not compete in terms of lines offered, innovation and opening hours.

The report also includes a series of recommendations, including:

• Encouraging shops to develop new lines and layouts, including the greater stocking of local produce. There is also scope for new services with rural shops offering to act as agents for larger companies;
• Increased targeting of the tourist sector;
• The provision of a range of public sector support which would assist proprietors to invest for the future through upgrading premises and equipment;
• Increased co-operation between retailers, with consideration given to bulk purchasing of supplies and sharing transport costs, etc.
• Entry to and exit from the sector should be made easier.

The report suggests that funding from EU Programmes and bodies such as WIE and Comhairle nan Eilean Siar, could help strengthen the rural shop sector in the medium to long term, especially if coupled with consultancy advice from a major UK retailing chain.

Mr Donnie Macaulay, Chief Executive of WIE commented: "The survey has provided a useful insight to the current and possible future issues facing the sector and is likely to form the baseline from which appropriate forms of support can be developed."