The convenience retail market is set to grow by 9.2% or £3.8bn in 2020, due to the impact of the coronavirus pandemic and resulting lockdown, according to UK Convenience Market Report Update 2020 from Lumina Intelligence.
While all convenience channels are forecast to grow in 2020, co-operatives, symbol groups and unaffiliated independents are set to outperform the total market, with forecasted growth rates of 11%, 10.9% and 9.,9% respectively.
Restrictions on movement, a fall in out of home consumption and the increased adoption of technology are all cited as reason for the gorowtn, with the report also predicting that the UK convenience retail market will reach a value of £46bn by 2023, as weekly sales per store return to more typical levels in 2021 and beyond.
Katherine Prowse, insight manager at Lumina Intelligence said: “Throughout the lockdown period, convenience retailers offered a lifeline to local communities across the UK. Record year-on-year growth is a testament to the efforts of these frontline workers. As restrictions begin to tighten again, retailers can reassure shoppers that they will continue to support them.”
“Whilst we forecast growth to normalise in 2021, this period provides the perfect opportunity for retailers to cement their position within the local community and drive loyalty in order to maintain footfall once the pandemic is over.”
However, research from Lumina Intelligence, the the UK food to go market is set to decline £6bn in 2020, as a result of the pandemic. However, the report forecasts that turnover of will recover to close to its 2019 level by the end of 2022.
UK Food To Go Market Report 2020 reveals tht the impact of the past tweltbe moth will wipe £6bn off the market value in 2020. This equates to a decline of -29%, taking the market value to £15bn.