Indies to outperform overall convenience market in 2020, says new report

The convenience retail market is set to grow at eight percent in 2020 to reach £44.7 billion in sales, predicts a new report from market researchers HIM & MCA Insight, a strong rise from 2.6 per cent growth in the previous year.

The UK Convenience Market Report 2020 also forecasts unaffiliated independents to outperform the overall market, growing by 11 per cent this year.

The report says the co-operatives are set to see the fastest growth – up 12 per cent year-on-year. Symbol stores are forecast to grow seven per cent, forecourt stores and convenience multiples at 6 per cent each.

The trend of increased volume and sales during the coronavirus lockdown period is set to continue even after the easing of lockdown measures, the report notes.

“A shift in shopper missions has resulted in increased basket spend and size, rewarding retailers for the support and commitment they have shown to their local communities,” commented Blonnie Walsh, head of insight at HIM& MCA Insight.

Consumers are also increasingly choosing convenience sector for main and planned top-up shopping with independent retailers more flexible when faced with stock pressures. Planned top-up shops have increased 4pps year-on-year, accounting for 22 per cent of all convenience trips in 2020.

“Provenance has been a growing trend for some time, and we continue to see increases in the proportion of shoppers choosing a particular store in order to support local businesses. The lockdown will only have accelerated this trend and retailers can leverage this by highlighting local credentials, including work with local suppliers,” Walsh said.

The agency added that a recent snap survey found 69 per cent of consumers say their local convenience store is doing all that it can to support the community and its customers.