The UK
convenience market is due to be worth £49bn by 2019, growing by over 30% over
the next five years from a current value of £37bn, according to data released by
IGD.
Symbol group operators (such as Costcutter and Nisa) have the
biggest overall share of convenience sales, accounting for just over £4 in every
£10 spent in convenience stores. Sales at symbols groups represent more than the
next two largest groups (convenience multiples and unaffiliated independents)
combined.
The convenience multiples have experienced the fastest growing
increase in sales in the 12 months to April 2014 and are now the second largest
part of the market:
|
|
Convenience sales 2014 £m
|
Share of sales 2014 %
|
Sales change year to April 2014
%
|
|
Symbol groups
|
15,537
|
42
|
5.1
|
|
Convenience multiples
|
7,277
|
19
|
16.3
|
|
Unaffiliated independents
|
6,528
|
17
|
-0.1
|
|
Convenience forecourts
|
3,962
|
11
|
-0.5
|
|
Co-operatives
|
4,125
|
11
|
2.3
|
|
Total convenience
|
37,430
|
100
|
5.2
|
Source: IGD Retail Analysis. Please note individual segments do
not add up to the total convenience value due to rounding
Unaffiliated independents and symbol groups account for over
70% of the total number of convenience stores and while growing at the fastest
rate, convenience multiples still represent less than 10% of total
stores:
|
|
Number of Stores 2014
|
Share of stores 2014 %
|
Stores change year to April 2014 %
|
|
Unaffiliated independents
|
18,630
|
38
|
-1.0
|
|
Symbol groups
|
17,080
|
34
|
2.8
|
|
Convenience forecourts
|
7,418
|
15
|
-1.6
|
|
Convenience multiples
|
3,771
|
8
|
13.6
|
|
Co-operatives
|
2,680
|
5
|
1.6
|
|
Total convenience
|
49,579
|
100
|
1.3
|
Source: IGD Retail Analysis and William Reed Business Media
Joanne Denney-Finch, Chief Executive, IGD, said:
“The convenience sector continues to build on its success and we’re forecasting
almost £12bn in extra sales between now and 2019.
“Convenience stores
are benefiting from changing social demographics, such as smaller households,
and shoppers spreading more of their spending across a variety of grocery
formats. Our latest ShopperVista research shows that seven out of ten (71%) of
them are using both a supermarket and convenience shop in any given month.
“Our 24-hour, seven day a week society means people can buy anything,
anywhere and at any time. Convenience stores are well placed to make the most of
this trend as shoppers use them more than any other type of grocery
format.
“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. This also provides another reason for shoppers
to visit, helping them combine two tasks in one journey”.
She added:
“With all types of retailers focusing so much on convenience, it’s an incredibly
exciting time to be involved in this sector. However, it’s vital convenience
shops stay close to shoppers changing needs and keep innovating to maintain this
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.”
NamNews - Friday 23rd May 2014