Consumer spend in the convenience store sector is growing and fresh produce is set to play a key role in the battle for market share.
A new report by grocery think-tank IGD says 20p in every pound is spent on food and grocery in c-stores in a market which is now worth £23.9 billion.
Growing multiple focus on the sector, is only likely to increase that spend further.
Smaller retailers will have to use fresh produce as a key weapon in the fight to stay in the game, experts warn.
According to a survey of 6,000 stores by the IGD, fruit and vegetables sales have almost doubled.
Nick Everitt, author of the report, said: “Sales have grown from 2.3 per cent in 2003 to 4.1 per cent this year, so fruit and veg is growing significantly in terms of sales contribution.”
Meanwhile the number of stores stocking fresh produce has risen. “In the convenience multiple area, it has risen from 60 per cent of stores to 95 per cent. In the symbol store sector, it has risen from 70 per cent to 76 per cent,” said Everitt.
The forecourt area has also seen significant change. “These stores have seen strong growth, with 18.8 per cent of forecourts now stocking fresh produce. That represents a big opportunity. Produce is now a key part of most c-stores.”
Jamie Davison, Costcutter’s director of sales, told delegates to Re:fresh recently: “Fresh produce presents a massive opportunity for sales and profit. It is an area where too many stores in the sector have been weak and it is an area in which the invading multiples are very strong.
“The difference between an exceptional independent retailer and a good one is the quality of its fresh produce offer,” said Davison. “If you get this right then you gain the trust of the consumer and they will return.”
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