Fresh foods have continued to snare an increasing share of shoppers’ spend in the UK convenience market, according to research published by analyst IGD.
The findings, based on IGD’s annual Convenience Tracking Survey of convenience multiples, symbol groups, co-operative convenience stores and forecourt stores, shows that fresh food sales rose in 2006 to 25.8 per cent of total sales, up from 24.4 per cent in 2005.
The IGD report states that the convenience multiples, for example Marks & Spencer Simply Food, Sainsbury’s Local and Tesco Express, have set the benchmark in terms of fresh food merchandising, with both Sainsbury’s and M&S recently announcing expansion of their c-store portfolio. “In addition, regional operators have also been adapting their offers and expanding their fresh food ranges,” said IGD.
David Morris, fresh produce trading controller at AF Blakemore, which owns Re:fresh Convenience Retailer of the Year, Tates, told FPJ: “Over the last few years there has been a shift in the way we sell and display fresh foods, and as our sales of fresh produce have risen, so has our business as a whole. We have had to keep up with our competitors, especially convenience multiples. Market research shows that if you get your fresh produce aisle right, then consumers will trust you.”
The IGD states that there is a close correlation between health and freshness, which is important for those c-store operators with a strong fresh food offering, given that consumers are likely to shop for fresh items on a more regular basis.
However, traditional c-store categories, including tobacco, alcohol and confectionery, continue to account for almost 60 per cent of all sales. While the role of fresh foods within convenience stores will continue to evolve, other priorities may come to the fore, such as the development of retailing services and food-to-go, states IGD.
“Fresh produce and food-to-go will be at the top of our priority list over the next two to three years,” added Morris. “In the next few weeks we will be launching a range of snack fruits that therefore falls into both categories.”
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