Convenience store sector trends

The UK convenience store sector is undergoing a period of change. In recent years, the number of small independent stores has declined, while the number of larger chain stores has increased. This trend is likely to continue in the future, as consumers increasingly demand greater convenience and choice. In response to this demand, many convenience store chains are now expanding their product ranges and introducing new services such as click-and-collect.

At the same time, the way in which convenience stores are used is changing, with customers now using them for tasks such as ordering groceries and collecting prescriptions. As a result of these changes, the convenience store sector is evolving to meet the needs of modern consumers.

Convenience Stores in the UK – Market trends 

There have been many changes in convenience stores from their beginnings as grocers, newsagents, and petrol filling stations’ forecourts. The small corner shop has had to adapt to survive because people do most of their household shopping at supermarkets nowadays.

During the past few years, there have been:

• Rather than basic groceries, consumers are increasingly seeking convenience or ‘top-up’ lines
• Increasing demand for snacks, impulse, and take-away food items, including fresh foods
• An increase in the number of hours that stores are open
• Tesco Express, a successful c-store format from a supermarket, is spreading
• Multiple chain c-stores are growing rapidly
• Improvements in convenience store facilities and product offerings
• Competition puts pressure on prices
• The introduction of food legislation and increased regulation of the food sector
• Tobacco product displays in shops are prohibited by smoking bans and legislation
• Selling alcohol below the combined duty and VAT cost in England and Wales
• The introduction of minimum unit pricing on alcohol in Scotland and Northern Ireland from May 2018
• Online grocery shopping is on the rise
• Discounters like Aldi and Lidl have seen a huge increase in sales

Many independent shops have joined symbol groups in an attempt to improve their survival chances, though there is still a demand for well-run neighbourhood shops.

The following decisions must be made:

• Your proposed business will be able to meet the demand in your area. It may be difficult to find customers in rural areas if you intend to locate there
• Unless your area has suffered many business failures and factory closures in recent years, local residents will likely shop at the cheapest supermarket if your economy is strong
• Compared to other c-stores, discounters, supermarkets, newsagents, and petrol stations, you will be able to compete with them

Keeping up to date with the convenience store sector

Keeping up to date with industry developments is easy when you join a trade association.

Convenience stores are represented by the Association of Convenience Stores (ACS). All those operating in this market will find a great deal of interest in the ACS’s annual Local Shop Report. In addition, they produce advice guides covering many aspects of convenience retailing and conduct regular crime surveys. Details can be found on the ACS website. A number of reports on the grocery sector are published by the Scottish Grocers Federation. There is a Scottish Shop website where these are available. Its mission is to provide a wealth of information to the grocery and food industries.

Independent grocery retailers in Northern Ireland are protected and enhanced by Retail NI. More information can be found on Retail NI’s website.

It is also a good idea to subscribe to a trade journal in order to stay up to date. In addition to The Grocer, William Reed also publishes Convenience Store magazine, covering news and features of interest to the industry.

Read more: Legal issues for Convenience stores

Conclusion

The UK convenience store market is growing at a rapid pace, with sales expected to reach £37.7 billion by 2023. This growth is being driven by a number of factors, including an increase in the number of working adults and a desire for more convenient shopping options. In addition, the rise of online grocery shopping has made convenience stores more popular than ever before.

As a result, many supermarkets are now trying to tap into this market by increasing their own convenience store offerings. However, the true success of the convenience store market will come down to its ability to provide customers with what they want: convenient, affordable access to food and other necessary items.