A passionate journalist with about a decade of experience, Pooja has developed a strong hold on the UK grocery retail sector. From exploring legislative changes, supply chain shifts, consumer buying habits, trends to retail crime, her work is driven by a deep belief in investigating, finding the truth and telling authentic unbiased stories.
Be it convenience pathbreakers, wholesale trendsetters or Post Office Horizon scandal victims, Pooja has an equal flair for deciphering industries as well as human complexities. At Asian Trader, she aims to bridge the gap between policy, trade, and the shop floor, always keeping a finger on the pulse of what matters most to retailers.
Red Bull and Monster Energy have contributed the greatest amount of unit growth in the independent convenience channel in 2024, shows a TWC report released today (18), highlighting many other key trends that shaped the independent convenience channel last year.
Value sales were down -6 per cent through 2024 majorly owing to drop in sales of tobacco products though value growth was seen in confectionery, soft drinks and food-to-go, states the report.
Alcohol sales under-performed at Christmas while branded products outperformed own-label sales in the convenience channel.
The source data comes from TWC’s ‘SmartView Convenience’ (SVC) market read, which is already recognised as the most reflective read for independent convenience stores, despite launching just 18 months ago.
SVC is a market read for the independent convenience sector, comprising EPOS sales data from a sample of 5,000 stores reflective of the market structure including both unaffiliated independents and wholesaler-supplier symbol fascias, including Booker’s Premier and Londis; Bestway’s Best One and Costcutter; Nisa; and the Unitas fascias.
Data is extrapolated to represent the entire GB independent market (excluding Spar) of around 30,000 stores and is also geographically representative.
After reviewing SVC data representing over ten billion purchases through 2024, TWC was able to share key trends with over one hundred industry executives (wholesalers and suppliers) via a webinar last week.
The key trends are:
Value sales were down -6 per cent through 2024 (52 w/e 29.12.24) but this was driven by declines in tobacco / tobacco alternatives and commission – when these departments are removed, sales fell -2 per cent across the sector.
Three categories were in value growth in the sector – confectionery, soft drinks and food-to-go.
Average spend per unit has only increased by 1 per cent in 2024.
Alcohol sales under-performed at Christmas (versus the performance over the rest of the year), reflecting the deep promotions offered by other operators (e.g. retail multiples) during December; as well as changing consumer habits and the fact that the comparative period in 2023 included two less trading days on the run up to New Year’s Eve (4 w/e 29.12.23).
Branded products outperformed own-label sales in the sector.
The leading suppliers are winning share. In eight key convenience categories, three quarters of the top two suppliers in each category are growing their share of sales in the channel.
UK convenience store market performance
TWC Group also revealed the top thirty growth brands in the sector through 2024, which have collectively brought in 104 million additional unit sales in 2024.
Red Bull saw the biggest actual unit sales increase in the year, followed by Monster Energy. These thirty brands contributed 46 per cent of total volume sales growth in the sector in 2024.
TWC has identified six core drivers behind brand growth in the channel:
High stimulation beverages
Spicy and sour products
Treats for kids (especially ‘Gen Alpha’)
Good value products (e.g. PMPs)
New product development
Regionality (e.g. products relevant to specific regions)
Regarding NPD, new products from these 30 brands accounted for 12 per cent of all volume sales in the channel in 2024, states TWC report.
Sarah Coleman, Product Director at TWC Group, says there are still plenty of reasons to be positive in this sector.
“Firstly, the number of convenience stores has grown in the last 12 months, to over 50,000 outlets.
The share of total outlets that are independently owned/run is holding firm, which means the number of indie outlets is in growth (by 1200 year on year), according to the Association of Convenience Stores (ACS).”
Coleman continues: “Consumer research previously conducted by TWC Group revealed many untapped opportunities – for example, 40 per cent of consumers who buy beer, lager or cider do not buy these products from their independent convenience store.
"Similar findings were discovered in other categories too. If suppliers and wholesalers can work together and find solutions to appeal to c-store shoppers, there is still plenty of growth to be had in this important route to market channel, as proven by our top 30 growth brands ranking.”
Suppliers and wholesalers can now access location-specific data as an extension to SmartView Convenience.
Coleman highlights that this is potentially a game changer for the sector – TWC is the only data agency who offers location-specific data for up to 12,500 independent convenience stores) and SmartView Convenience (SVC) market read, allowing subscribers to understand both total market performance and to plan targeted activity in the channel from a single source of data.
Furthermore, TWC is launching a consumer, shopper and retailer research proposition to complement the SVC data.
Coleman points out, “Our SmartView Convenience market read reports what is bought, meanwhile consumer/shopper/retailer research will provide compelling why insights, to understand the motives behind why products are purchased, or not.
"As such, TWC really is becoming the ‘one stop shop’ for data combined with insights – ‘the what and the why’ – and we look forward to extending our services further in 2025.”
Cost-cautious Britons are spending more on home-cooked meals, risking to bring inflation back to grocery stores, a recent report has stated.
According to research by Retail Economics and NatWest, UK consumers expect to be spending more money on in the next three months on groceries while less on eating and drinking out.
It reflects a social phenomenon stemming back to the pandemic when people got into the habit of attempting restaurant-quality meals at home. Supermarkets subsequently put more effort into their premium ranges and have profited from a boom in demand.
Richard Lim, chief executive officer at Retail Economics, also said that Britain’s grocers should be able to reap the rewards of strong demand for high quality, niche and premium ranges, while keeping a lid on the price of more basic products.
“Grocers really need to focus on being competitive across those core essentials and then they will try to protect margins in other parts of the basket,” Lim said. “There might be deflation in some areas, inflation in other areas.”
Last week, supermarket Asda , slashed prices on 1,500 products in an effort to win back droves of customers who have switched to its rivals.
However, Bloomberg analysts state that price wars are "not necessarily incompatible with rising inflation", when broader economic conditions lift cost pressures.
Charles Allen, a senior retail analyst at Bloomberg Intelligence, said one of the fiercest price wars in the UK came during the high inflation of the late 1970s.
With the upcoming sharp increase in employment taxes and another steep hike in the minimum wage, retailers are expected to pass on some costs to customers, hence increase prices.
Supermarkets Sainsbury’s and Tesco together employ nearly half a million workers, and collectively the two supermarkets are facing an extra £390 million bill due to the budget measures, states the Bloomberg report.
“They’ve had many rounds of trying to operate as efficiently as possible in order to minimise prices for the consumer,” Jessica Moulton, senior partner at McKinsey, said. “The grocers are at their limits.”
Food inflation accelerated to 3.3 per cent in the year to January, and market surveys suggest it stayed high in recent weeks.
The retail association has expressed deep concern over the latest Office for National Statistics (ONS) data showing that the UK retail sector has lost nearly a quarter of a million jobs over the past five years.
The British Independent Retailers Association (Bira), which works with over 6,000 independent retailers across the UK, has highlighted the devastating impact these job losses are having on high streets nationwide.
The ONS figures reveal that as of December 2024, there were 2.88 million retail jobs in the UK, with the four-quarter average dropping to 2.84 million jobs. This represents a decline of 70,000 from the previous year and 249,000 fewer jobs than five years ago.
The data further highlights that full-time jobs have fallen by 106,000 and part-time roles by 142,000 compared to five years ago, painting a concerning picture for the sector that has traditionally been a significant employer across the UK.
Andrew Goodacre
Andrew Goodacre
"These alarming figures confirm what we've been hearing from our members across the country," said Andrew Goodacre, Bira CEO. "Independent retailers are facing unprecedented challenges, and this record number of job losses reflects the severe pressure on high streets throughout the UK. In the past year alone, we've seen over 14,000 independent shops close their doors permanently, with many more struggling to survive.
"The impact is felt most acutely in our town centres, where independent retailers have traditionally been the backbone of local economies. With a 14 per cent vacancy rate on high streets across the UK, we are witnessing the hollowing out of once-vibrant communities."
Bira is particularly concerned about the disproportionate impact on part-time jobs, which have seen the steepest decline. Part-time positions are crucial for many independent retailers who rely on flexible staffing models to manage costs while maintaining customer service levels.
Mr Goodacre added: "Independent retailers need meaningful support now more than ever. This isn't just about preserving jobs – it's about protecting the character and vitality of our high streets. We are calling on the government to implement an urgent review of business rates, provide targeted relief for small retailers, and develop a comprehensive strategy to revitalise town centres."
Bira's conversations with members indicate that retailers across the board are expressing significant concerns about their ability to maintain current staffing levels over the next 12 months, with rising operational costs cited as the primary challenge.
The number of retail jobs in 2024 slumped to the lowest since the data began in 1996, despite total jobs in the economy continuing to rise, shows the latest report by the ONS,
there were 2.88m jobs in retail in December 2024.This is traditionally the high point of the year, with retailers employing more people during the key Christmas quarter. The four-quarter average was 2.84m jobs, 70,000 fewer than at the same point last year, and 249,000 fewer than five years ago.
On a four-quarter average there were 1.50m part-time and 1.34m full-time jobs. The number of full-time jobs is down 106,000 on five years ago. Meanwhile, the number of part-time jobs is down 142,000 on five years ago.
Commenting on these figures, Helen Dickinson, Chief Executive at the British Retail Consortium, said, “The number of retail jobs in 2024 was the lowest since the data began in 1996, despite total jobs in the economy continuing to rise. While this decline in retail jobs should be a concern to communities everywhere, worse could be yet to come.
"Last October’s Budget forced retailer wage bills up by over £5bn, and both the rise in employer NICs and increased National Living Wage have made hiring significantly more costly.
"A recent survey of retail Finance Directors showed that half were planning hiring freezes or cutting jobs, both in head offices and stores across the UK.
“Jobs cuts are likely to fall disproportionately on part-time roles. 200,000 part-time jobs have already been lost over the last seven years, and up to 160,000 more part-time roles are at risk in the next three years.
"This matters: flexible retail roles are an important stepping stone for many people, whether it’s a first job out of school or a part-time role for those returning to the workforce or with caring responsibilities.
"As the Government’s welfare reforms aim to increase the numbers in work, flexible retail roles offer a first rung back onto the career ladder.
“Retailers face uncertainty around the new Growth and Skills Levy and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or retrain people.
"Reducing part-time and reskilling opportunities in retail would not only be a loss to the industry, the UK’s largest private sector employer, but would also punish the millions of people who benefit from flexible, local jobs.
"If Government can ensure these policies help, rather than hinder, recruitment and investment in training, the industry can help provide routes back into work for those who need it.
"Government must join the dots on these different policies to create a win-win for employees, employers, and the wider economy.”
Food and grocery spending expectations continued to outperform other categories this month, shows the recent industry data, reflecting the improved confidence in the shoppers.
According to BRC-Opinium data released today (20), consumer expectations over the next three months of the state of the economy improved slightly to -35 in March, up from -37 in February.
Expectation over their personal financial situation also improved slightly to -10 in March, up from -11 in February while for personal spending on retail rose to 0 in March, up from -5 in February.
Consumer expectation over their personal spending overall rose to +11 in March, up from +4 in February while that on their personal saving fell to -5 in March, down from -3 in February.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Consumer confidence stabilised this month after February’s record low.
"This was coupled with an increase in spending expectations for the three months ahead, both for retail spending and spending more generally.
"Within retail, spending expectations for DIY and home improvements moved into positive territory for the first time. Across all categories, Gen Z (18-27) expected to spend more than the previous 3 months in every category, while Gen X (44-59) planned the biggest cuts to spending for most items, excluding food.
"Food and grocery spending expectations continued to outperform other categories, hitting a new high, though this could also be due to the expectation of rising prices.
“The Spring statement is an opportunity for government to inject some confidence back into the economy. In a matter of weeks, retailers grapple with the reality of billions in extra costs from the increases to employer National Insurance and the National Living Wage.
"This £5bn in new costs will give many no option but to push prices up. Food inflation is likely to hit 5 per cent by the end of the year, and with further costs from the new packaging tax and implementation of the Employment Rights Bill, prices risk being pushed up further.
"Without a much needed confidence boost from government, the scale of new costs will see retail investment fall further, holding back future growth in the economy.”
European-style fruit-led or fruity beer is increasingly gaining popularity in the UK, emerging as the Britain’s fastest growing beer trend.
According to Tesco, demand for these lighter thirst-quenching beers, which have a typical strength of around 4% ABV, is rocketing so much that the supermarket has seen sales volume grow by 250 per cent in the last year.
These fruity beer styles have long been popular in western European countries such as France, Germany, Belgium, Spain and Italy, and are associated with ‘after sport’ refreshment, particularly skiing and cycling.
Over the last 15 years, various European beers with fruity profiles have gradually become more popular over here such as Belgian strawberry brews Fruli and Bacchus Kriek, and more recently Radler, a shandy style beer from Germany and Damm Lemon from Spain.
Seven years ago, dedicated UK fruit lager brand Jubel was launched and quickly established themselves as one of the hippest beers for drinkers in the 21-35 age group.
The company now has five different varieties – peach, mango, blood orange, lemon and grapefruit - of its 4 per cent strength lager and has seen volume grow in Tesco by more than 300 per cent.
Tesco beer buyer Ben Cole said, “The soaring demand for fruit-led brews, particularly lager, has taken the UK drinks market by storm and is the biggest trend to hit the beer scene since the craft boom started more than 15 years ago.
“The trend actually has its roots in the craft beer movement because it introduced beers with tropical fruit profiles to more drinkers than ever before.
“For many people the craft movement changed the perception of what a beer could taste like and opened many drinkers’ palates to a wider range of styles.”
The trend is also similar to the fruit-led cider boom which began 20 years ago with the introduction of pear varieties.
That movement came after Magners reinvented cider as a refreshing drink to be enjoyed ‘over ice’ and within a few years other cider manufacturers such as Kopparberg were marketing fruit-led variants.
Jubel were the first UK company to exclusively take note of the fruit-led side of the beer market and formed in April 2018.
Founder Jesse Wilson got the idea for the company during a skiing trip to France where his group of friends found that the Bière Pêche being served – which included a shot of peach syrup – was light and refreshing.
Wilson said, “We were a mixed group of men and women, some of whom liked beer and some who didn’t, but we all loved the Bière Pêche being served – a pint of lager with a peach top – and it gave me the idea to start the brand.
“I thought that style of lager could be the perfectly refreshing pint in pubs and that’s where our business grew, with word of mouth spreading rapidly, to the point where it seems our flagship peach lager is now the fifth biggest craft beer in the on-trade based on CGA reported volumes.
“We are incredibly excited that retailers like Tesco see this as the biggest trend to hit beer since the craft beer movement, and we’re pumped to be pioneering it.”