Strategic expansion of leading convenience fascias which are expanding their estates through targeted acquisitions has fuelled significant growth in convenience channel, a recent report has shown.
Data recently published in the latest Lumina Intelligence Convenience Market Report 2024 reveals significant growth in the convenience market, driven by strategic expansion, acquisitions, and tech-led innovation.
Strategic expansion and acquisition fuel growth, with leading convenience fascias expanding their estates through targeted acquisitions, positioning themselves for continued growth. The top 10 convenience fascias are forecasted to achieve a combined average growth of +5.8 per cent in 2024.
Notably, Asda Express is expected to lead this growth with an impressive +41.7 per cent increase in outlets, fuelled by site conversions from recent Co-op and EG Group acquisitions. Nisa follows with +17.7 per cent growth, driven by targeted forecourt store recruitment.
To meet diverse shopper needs and enhance commercial viability, retailers such as Bestway are adopting hybrid store models. These models blend convenience with destination categories, including premium off-licenses, foodservice-standard food to go, and soft drinks. By offering a wider range of products and services, these stores appeal to broader customer bases, providing a competitive edge in the market.
Technological advancements are playing a crucial role in the growth of convenience stores. Retailers like Premier and SPAR are leveraging technology to streamline in-store processes and enhance operational efficiency. In a significant move, Tesco has introduced AI-powered 'Clubcard Challenges' to personalise the shopper experience. This innovative approach aims to boost customer engagement and loyalty through tailored rewards.
