Convenience Market Set To Grow 30% To £46.2m By 2018

The food and grocery convenience market in the UK is set to be worth £46.2bn by 2018, increasing by nearly a third (29.8%) from its current value of £35.6bn. It will grow by an annual average rate of 5.3% over the next five years, according to the latest research from IGD.

Symbol operators currently account for just over 40% of convenience sales, significantly more than the other segments. Convenience multiples were the fastest growing segment in the 12 months to April 2013:

	Convenience sales 2013 £m	Sales change 2012 – April 2013%
Symbol groups	14,782	8.4
Non-affiliated independents	6,531	-0.5
Convenience multiples	6,257	11.1
Convenience forecourts	3,983	-3.7
Co-operatives	4,031	2.3
Total	35,586	4.9

Source: IGD Retail Analysis

Non-affiliated independents still have the highest number of convenience stores. While the number owned by the multiples has grown the fastest, they currently represent less than 10% of the sector.

Symbol groups have also shown strong growth in store numbers, up 3.2% in the year to April:

	Number of stores 2013	Stores change 2012 – April 2013%
Non-affiliated independents	18,826	-2.1
Symbol groups	16,889	3.2
Convenience forecourts	7,537	-5.2
Convenience multiples	3,318	9.6
Co-operatives	2,637	2.9
Total	49,207	0.1%

Source: IGD Retail Analysis and William Reed Business Media

Commenting on the research, Joanne Denney-Finch, Chief Executive at IGD, said: “The convenience sector goes from strength to strength – we are forecasting £11bn in extra annual sales between now and 2018. The increasing quality of the stores and shopping experience is helping to broaden the sector’s appeal. Rather than offering the same thing to everybody, convenience operators are increasingly tailoring their stores and products depending on local demographics and shopper missions.

“Convenience stores are also making the most of their convenient locations with some differentiating themselves by offering Amazon lockers, for example, while others are providing pick-up locations for parcel deliveries. This provides busy shoppers the chance to use the large convenience store network to make their everyday tasks easier to manage.

“Symbol groups offer independent store owners the chance to join a growing part of the market, providing advantages such as group marketing and collective purchasing power.

“And with different types of retailers placing such an emphasis on the convenience sector, there’s never been a more exciting time for the channel.”

Source: http://www.kamcity.com/namnews/asp/newsarticle.asp?newsid=70312