The convenience retail market within the UK is set to grow by 8% to £44.7bn in 2020, according to HIM & MCA insight’s new UK Convenience Market Report 2020.
Up from 2.6% growth in 2019, the findings show increased volume and sales during the coronavirus lockdown period, as consumers favour in-home consumption due to risk aversion as well as watching their discretionary spend.
When split out by store type, co-operatives are forecast to see the fastest growth – up 12% year-on-year. Unaffiliated independents are set to grow 11%, symbol stores 7%, forecourt stores 6% and convenience multiples 6%.
Blonnie Walsh, head of insight at HIM & MCA Insight says: “The turn of the decade has seen a transformative year for the convenience retail market. Convenience retailers have been forced to adapt to new basket dynamics and an evolving core consumer base. A shift in shopper missions has resulted in increased basket spend and size, rewarding retailers for the support and commitment they have shown to their local communities.”
“Provenance has been a growing trend for some time, and we continue to see increases in the proportion of shoppers choosing a particular store in order to support local businesses. The lockdown will only have accelerated this trend and retailers can leverage this by highlighting local credentials, including work with local suppliers.”