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    Sales growth to double this year at c-stores: Mintel

    A shopkeeper wears protective mask while working at a convenience store in Crouch Hill on April 14, 2020 in London, United Kingdom. (Photo by Hollie Adams/Getty Images)

    The impact of the COVID-19 pandemic will see sales growth more than doubling at convenience stores in 2020, a new report by Mintel predicts.

    The research agency forecast the channel to grow by almost 8 per cent this year to reach a sales value of £47.5 billion. The growth figure compares to 3 per cent in 2019, and outpaces the estimated 6 per cent growth for wider grocery sector this year.

    “The shift to localised shopping during the peak of COVID-19 has benefited the convenience sector, driving larger-basket demand and sales as consumers necessarily shopped more in their local communities,” commented Nick Carroll, associate director of retail research at Mintel.

    An IGD report published last week has also predicted similar growth for the convenience channel this year.

    Convenience channel to grow over 13 per cent by 2022: IGD

    The Mintel report underlines the consumer support for convenience stores with 80 per cent of users agreeing that the local shops provide essential services in the community.  A quarter of the consumers have also reported that they are now shopping more with local businesses after the virus outbreak.

    “Longer term, the importance of convenience stores within these communities and consumers’ desire to support them will only be reinforced – providing a solid platform for convenience retailers to build upon,” Carroll added.

    Mintel, however, predicted a decline of -3.9% in the market in 2021 as it rebalances before reaching  more consistent lower growth through to 2024 (of 2-3%) when the market is forecast to reach £49 billion.

    The report also notes that not all categories are benefiting from the pandemic demand in the convenience stores.

    “On-the-go food and drink, for example, is a significant part of convenience trade and has naturally been constricted by lower levels of public movement and more working at home since the lockdown. In particular this has impacted convenience stores in travel hubs,” Carroll said.

    “However, this decline in sales has been offset by more spending on in-home food and drink as shoppers look to shop closer to home.”

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