The convenience store sector is witnessing significant growth as supermarket chains accelerate their expansion efforts. Opening more than one new location each week, this trend highlights a strategic shift towards smaller retail formats.
- In the first half of 2024, 85 convenience stores were launched, reflecting increasing consumer demand.
- Major grocery chains are prioritizing convenience formats over traditional large supermarkets.
- Asda, Morrisons, M&S, and Waitrose are leading this initiative with extensive expansion plans.
- The industry has invested £1bn to enhance store efficiency and appeal.
The convenience store market is experiencing a remarkable upswing, with more than one new store opening each week. This growth is evidenced by PwC’s data showing 85 new launches in the first half of 2024. This development indicates a strategic pivot among retailers to adapt to evolving consumer preferences for accessible and quick shopping experiences.
Several leading grocery chains have redirected their efforts towards convenience store formats. Asda, for instance, announced its ambitious plan to open 110 new Express stores, predominantly through conversion of existing Co-op and EG Group sites. This move reflects Asda’s focus on widening its reach across the United Kingdom through smaller, strategically located sites.
Morrisons has unveiled similar plans, aiming to significantly increase its footprint by opening 400 new Morrisons Daily convenience stores. The company aspires to operate 2,000 such outlets by 2025, illustrating its commitment to expanding its market presence through more agile and consumer-friendly formats.
M&S and Waitrose are also actively participating in this trend. M&S plans to open 10 new stores this year, with upgrades to 50 existing locations to strengthen its £1bn convenience business. Simultaneously, Waitrose announced an investment strategy to launch up to 100 new convenience outlets over the next five years.
This surge in convenience store openings is complemented by substantial investments in enhancing these spaces. The industry has collectively spent £1bn on modernizing stores, upgrading energy-efficient infrastructure, and implementing crime prevention measures. This financial commitment underscores the sector’s intent to not only expand its physical presence but also optimize operational efficiency and consumer appeal.
The strategic focus on convenience store expansion underscores retailers’ adaptation to consumer demand for accessible and efficient shopping options.
