U.K. Shoppers Forecast to Spend £11 Billion at C-Stores

The convenience store market in the United Kingdom will jump by close to a third within five years.

May 22, 2013

HERTFORDSHIRE, England – New research from IGD has shown that the U.K. food and grocery convenience market is set to be worth £46.2 billion by 2018, increasing by nearly a third (29.8%) from its current value of £35.6 billion. 

“The convenience sector goes from strength to strength — we are forecasting £11 billion in extra annual sales between now and 2018,” said Joanne Denney-Finch, CEO of IGD, in a press release. “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.”

IGD said the market is set to grow by an annual average rate of 5.3% over the next five years. Symbol operators currently account for just more than 40% of convenience sales, significantly more than the other segments. Convenience multiples were the fastest growing segment in the 12 months to April 2013. 

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.

“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,” said Denney-Finch. “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.”

“An incredible power struggle is taking place in convenience, and adding to the intrigue is the fact that supermarket chains don’t hold all the aces,” added Adam Leyland, editor of the Grocer. “With more shoppers looking to buy little and often, supermarket groups are certainly upping the ante in convenience, and as we have seen, some are playing catch-up while others are ahead of the curve.”

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