Good News for Convenience Stores
At last some good news for convenience stores. The UK Convenience Market Report 2020 predicts the convenience retail market will grow 8 per cent in 2020, an increase of 2.6 per cent since 2019.
When split out by store type, co-operatives are forecast to see the fastest growth – up 12% year-on-year. Independents look set to grow 11 per cent, symbol stores by seven per cent, forecourts and convenience multiples both up an estimated six per cent.
Increased volume and sales
Increased volume and sales were reported during the coronavirus lockdown period. Consumers opted to eat at home to avoid both risk and the constraints on disposable income due to risk aversion as well as watching their disposable income. Authors of the report HIM & MCA Insight forecast that this trend will continue despite lockdown measures being eased.
Convenience retail has benefitted from larger basket sizes and spend since the start of the coronavirus pandemic. The report found that basket value has grown 17 year-on-year to £7.46 and average basket size is now 2.5 items – up from 2.3 in 2019.
Planned top up shopping in convenience stores has also featured in recent months – even since before lockdown. Shoppers have turned to convenience for main and planned top-up shopping with independent retailers more flexible when faced with stock pressures.
Planned top-up shops have increased 4 percentage points year-on-year, accounting for 22 per cent of all convenience trips in 2020.