Convenience store penetration increases but frequency, spend, basket size fall

The proportion of consumers that shopped in convenience increased +5.1ppts in the
12 weeks ending (12WE) 03/04/22, to 63 percent versus the 12WE 09/01/2022, according to the latest 12-weekly data from the Lumina Intelligence Convenience Tracking
Programme.

This is driven by a number of factors, including sporting events, such as the Six Nations and Formula One, as well as more shoppers being out and about after eased Plan B restrictions.

Despite the increase in penetration, during the same period visit frequency, spend and basket size all declined. Average visit frequency declined -8.4 percent to 2.6 times per week, basket size fell -2.3 percent to 2.8 items per trip and spend -11.8 percent to £9.33 per visit.

With the Consumer Prices Index rising by a further +0.7 percent in February 2022, shoppers are visiting convenience stores less frequently, buying fewer products and restricting their spending when they shop, amid financial uncertainty and a fear of even higher prices in future.

In-store purchases have seen a boost of +4ppts in the last 12 weeks, after eased Plan B restrictions and shoppers returning to their pre pandemic habits. In-store shopping accounted for 91.5 percent of all convenience store occasions. The in-store boost has come at the expense of delivery and click and collect both declining in share by 3ppts and 1ppt, respectively, in the 12WE 03/04/2022.

The top up (distress) mission has seen the strongest growth in missions share of occasions, up by +1.2ppts. More shoppers are out and about and back to workplaces, with drink to go occasions increasing by +1ppt and contributing to lower spend and basket size. Treat led occasions have also increased by +1ppt, driven by seasonal events including Valentine’s Day and the run up to Easter.

Tesco Express and Sainsbury’s Local have seen the strongest growth with a share of occasions increasing by +3.7ppts and +1.8ppts, respectively. Tesco and Sainsbury’s have benefitted from being in the town centre, travel and city centre locations, with footfall at these locations picking up in the latest 12 weeks.

Commenting on the findings, Senior Insight Manager at Lumina Intelligence, Katherine Prowse, said, “As we face into this rising cost of living crisis, consumers will become more cautious on how and where they spend their money. This is already evident, with spend, frequency and basket size all declining in our latest 12-week period. However, the increase in penetration provides retailers with a big opportunity to demonstrate the value that they offer to a wider audience.

If they can demonstrate this, alongside their fantastic community spirit, then the opportunities to grow during challenging times will present themselves.”