The UK convenience store market is set for significant growth, outstripping supermarkets and discounters by 2028.
- Food and grocery spending in these stores is expected to reach £43.2 billion by 2028.
- Major grocery chains are increasing their convenience store presence to capitalize on this trend.
- Innovative pricing strategies are being employed to attract consumers to smaller store formats.
- Consumers’ evolving shopping habits are driving this shift toward more convenient purchasing options.
The landscape of the UK retail market is poised for a transformation, with convenience stores anticipated to experience substantial growth over the coming years. This expansion is projected to not only match but surpass the growth seen in supermarkets and discounters, becoming a dominant force in the retail sector.
According to GlobalData, spending in UK convenience stores is expected to surge to £43.2 billion by 2028. This represents a significant opportunity for retailers as they adapt to changing consumer demands for quick and accessible shopping experiences. Leading supermarket brands have recognized this trend, resulting in a marked expansion of their convenience store offerings.
Between 2023 and 2024, the UK’s leading grocery retailers, collectively known as the ‘big four’ – Tesco, Sainsbury’s, Asda, and Morrisons – have strategically increased their convenience store portfolios by adding 800 new locations. Notably, Asda and Morrisons have been at the forefront of this expansion with their aggressive acquisition strategies.
To tap into this burgeoning market, these supermarkets are implementing agile pricing strategies within their convenience outlets. Sainsbury’s, for instance, extended its Aldi Price Match initiative to these smaller stores, while Tesco has significantly reduced the prices of over 200 products in its Express stores. Such measures not only cater to cost-conscious consumers but also entice impulse purchases due to the perceived affordability.
Aliyah Siddika, a retail analyst at GlobalData, highlights the importance of these pricing strategies. She emphasizes targeting specific product categories that align with consumer buying patterns during the workweek, such as ready meals and snacks. This approach aims to capture spending from on-the-go customers while maintaining traffic at larger stores for regular shopping trips.
The anticipated growth of convenience stores highlights a shift in consumer preferences, positioning them as a vital segment in the UK’s retail sector.
