Convenience Retailing in the UK: Trends, Customer Research and Growth forecast during 2017-2022

Market Research HUB

Albany, New York, December 26, 2017: The “Convenience Retailing in the UK 2017“, report provides comprehensive insight into and analysis of the UK convenience retail market, the prevailing trends, hot issues, consumer motivations, strategies for success, and opportunities for future growth. Consumer data is based on our convenience survey using a panel of nationally representative shoppers.

The convenience retail market will continue to see strong growth, outperforming the overall food & grocery market by 2.4ppt, through to 2022. Consumer demand for speed and ease of purchase will drive this growth, resulting in it accounting for 22.9% of the food & grocery market by 2022. Wholesale consolidation has been the key topic of 2017, transforming the market and increasing competition as the major UK grocers turn to the channel in the search for growth. The Tesco-Booker deal will have the greatest impact on the market, driving down prices and making it ever tougher for independents to survive on slimmer margins with less buying power.

The report covers the following topics –
– Market drivers and inhibitors
– The hot issues
– Strategies for success
– Opportunities for growth
– What people buy
– Where people shop
– How people shop

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– The convenience market is set to grow 22.0% for the period 2017-22, versus total food & grocery sector growth of 19.6%, driven by fresh food and food-on-the-go, but muted by poor performance in tobacco.
– The multiples will see the greatest growth in market share, driven by acquisitions rather than organic store portfolio growth. Sales will rise 30.3% over the next five years for the multiples, increasing their market share to 39.9% in 2022. Meanwhile, the symbols will also perform well with sales forecast to rise 23.6%, aided by consolidation, store improvements, and rapid recruitment of independents.
– Millennials’ changing shopping habits are driving the growth of the convenience market with 25.3% of 24-35 year olds using convenience stores for their weekly shop and 48.6% of 16-24s using them to pick up food-on-the-go products – with convenience stealing some share from FOTG operators.
– Retailers must focus stores on mission based shoppers, particularly those shopping for food-on-the-go and meal-for-tonight. Therefore ranges must be focused on and stores rearranged. Consumers now expect convenience stores to be equivalent to small supermarkets.

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Reasons to buy

– Utilise our five year forecasts to 2022 for the convenience retail channel and sector penetration to help form an effective growth strategy by understanding where the strongest growth is coming from, and what is driving it.
– Understand why the convenience market has experienced such strong growth in relation to overall food & grocery retail, and how future growth can be tapped into from a logistical and consumer perspective.
– Consider our analysis of market drivers and inhibitors, hot issues, strategies for success, and opportunities for growth to understand the future of the market and potential for convenience retail. Convenience will be a challenging market to survive in, and we have identified ways to strengthen convenience propositions, as well as who the disruptors will be.
– Recognise what consumers want from the retail sector, both convenience-specifically, and in the general retail perspective. Convenience retailing is one of the most millennial-driven channels, and our analysis can be used to navigate the developing trends from this consumer group.

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