Shoppers who watch their budgets by topping-up their cupboards rather than buying in bulk are helping the convenience sector continue grow faster than the total food and grocery sector in 2012.
Supermarkets are piling money into the £35 billion convenience sector, with Waitrose the latest to announce new stores, but independents still dominate the sector.
With a 56 per cent market share, independents can fight back against the onslaught by “playing to existing strengths and creating new ones”, retail analysts Verdict have said.
Cliona Lynch, retail analyst at Verdict, said an existing strength for independents is the insulation from inflationary pressure that the convenience market provides.
“Shoppers tend to be less price sensitive in convenience stores, prioritising time saving, easy access and quick purchases over low prices,” she said.
“They are also more likely to spend a little more on each occasion, picking up impulse purchases that a planned shopping trip would not have allowed. Moreover, convenience stores benefit from distress purchases - unplanned and urgent shopping trips, which are linked to immediate needs rather than price.”
“What independent retailers should not overlook is their natural advantage in local loyalty dynamic. While loyalty at larger multiples is based around convenience, price, range and rewards, smaller retailers have the benefit of a different loyalty dynamic.
“Some customers want to support local produce, local commerce, and often are loyal to a personal relationship with a well known local retailer.”
Verdict believes regardless of the price points associated with their products, specialist ranges combined with expertise in a specific category gives small specialist independents competitive advantage against the multiple retailers.
