Convenience stores are forecast to grow £7.1 billion by 2023 thanks to the post-millennial generation ditching the big weekly shop.
According to industry research by IGD, convenience stores will enjoy annual growth rate of 3.3 per cent, reaching a value of £47.2b in the next five years.
With big four retailers and other supermarkets fighting to drive sales from existing stores while taking a conservative approach to expansion, IGD predicts that this will benefit convenience outlets.
Patrick Mitchell-Fox, senior business analyst at IGD said that new shopping habits from younger generations will also put convenience stores in a strong position for growth.
“A new generation of shoppers, post-millenial shoppers born between 1992 – 1999, have grown up in an era of “new” convenience, shopping in convenience stores for a wider range of products than generations before them,” Mitchell-Fox said.
“This generation of shoppers is used to stores with longer opening hours, that offer great quality products. But while they are key to driving growth they also have high expectations that need to be met.”
He added: “As shoppers shift away from the weekly shop to more frequent shopping, the need for speed in-store becomes an important advantage for convenience stores.”
