The UK convenience market is projected to grow by £6.9 billion (€7.5 billon) in the next five years to £48.2 billion (€52.2 billion) by 2024, according to IGD.
The category is expected to see a compound annual growth rate of 3.1%, boosted by new store openings during the period.
'Period Of Consolidation'
Senior business analyst at IGD, Patrick Mitchell-Fox, explained, "While we expect relatively muted store development across the sector as a whole in the next two years, with the sector undergoing a period of consolidation, we forecast key segments – in particular co-operatives, multiples, and symbols – to benefit from strong store growth again from 2021."
According to Mitchell-Fox, total convenience sales are set to grow by 2.6% in 2019, led by strong performance in the co-operatives segment, driven by new store openings and outstanding like-for-like performance.
"Multiples (retail chains), though still seeing solid growth, are now opening new stores at a more modest pace, targeting only those sites with the best potential," he added.
Commenting on the performance of franchise operations, he said the segment is "beginning to pick-up again, though it remains restrained as it stabilises after a period of notable disruption and instability."
Future Of Convenience Retail
As the average shopper spends just under eight minutes in a convenience store, IGD also identified three factors that would shape the future of the convenience channel in the UK.
These include redesigning the store layout and product offering for top-up shoppers. Around 54% of consumers have cited top-up shopping as the reason for their latest convenience store visit, the iGD said.
It also emphasised on the need to attract new customers by making room for food-to-go and takeaway coffee stations, which are well-established features of modern convenience stores.
Lastly, focus on 'mission-based' shopping would help retailers in offering customers options that help in speedy decision making, IGD said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
