The UK convenience channel looks set to add around £7.1 billion worth of sales over the next five years to be valued at £47.2 billion by 2023, according to IGD.
This means that the convenience channel will record a compound annual growth rate of around 3.3% per annum between now and 2023.
Combination Of Factors
“Growth in the convenience channel will come from a mix of activities,” commented
Patrick Mitchell-Fox, Senior Business Analyst at IGD.
“New store development will continue to be a key engine for the channel over the next five years, with the co-operatives, symbol and multiple retail segments leading the way.”
Mitchell-Fox also noted, however, that with the multiples taking a “more conservative approach” to expansion, there will also be an increased focus on driving sales from existing stores.
“This makes for a very positive outlook for convenience retailing and it remains one of the fastest growing channels in the UK food and grocery market,” he said.
Underpinning The Success
IGD will host its Convenience Retailing Summit this September, and ahead of that event, IGD has identified three factors underpinning the success of the UK convenience channel.
One is the emergence of a new generation of ‘post millennial’ shoppers, who have grown up in an era of ultra convenience.
Additionally, speed of shopping is becoming a more important factor.
“Further enhancing how quickly shoppers can navigate stores and purchase products will be central for the convenience channel,” said Mitchell-Fox.
Lastly, the convenience channel will need to target shopping missions more effectively, according to IGD.
“While topping up the weekly shop remains the main reason for shoppers to visit convenience stores, retailers are also focusing on driving other ways to encourage shoppers into store with more enticing ranges of food-to-go and evening meal solutions,” says Mitchell-Fox.
The IGD Convenience Retailing Summit takes place on 26 and 27 September.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
