The UK convenience market is expected to grow 30 per cent to a value of almost £50 billion over the next five years.
Smaller households and shoppers using a variety of formats are behind the huge growth in convenience channels, new IGD research has shown.
Figures from the IGD’s ShopperVista research suggested that around three quarters of shoppers use both a supermarkets and a convenience channel in any month.
Symbol group operators, such as Costcutter or Budgens, have the biggest overall share of convenience sales, accounting for around £4 in every £10 spent in UK convenience stores. Convenience multiples have had the fastest growing increase in sales in the 12 months to April 2014, and are now the second largest part of the market.
Joanne Denney-Finch, chief executive of the IGD, said it’s vital that convenience shops stay close to shoppers’ changing needs and keep innovating to maintain momentum. “One convenience operator, for example, tweets alerts about seasonal products while another has an interactive digital ‘smart pad’ allowing customers to view local suppliers and leave feedback,” she said.
“Building on the success of click and collect, convenience shops continue to offer a link between digital and physical shopping – acting both as a drop-off and collection point.
“With all types of retailers focusing so much on convenience, it’s an incredibly exciting time to be involved in this sector.”
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