The UK convenience retail market is expected to grow by £3.8bn in 2020, due to the impact of the coronavirus pandemic, new research reveals.
According to the new UK Convenience Market Report Update 2020 from Lumina Intelligence, the convenience retail market is set to grow by +9.2%.
While all convenience channels are forecast to grow this year, co-operatives, symbol groups and unaffiliated independents are set to outperform the total market, with forecasted growth rates of +11%, +10.9% and +9.9% respectively.
Restrictions on movement, a fall in out of home consumption and the increased adoption of technology are all factors that have benefited the UK grocery retail market.
Local c-stores continue to be best placed to capitalise on the growth opportunities, as shoppers stay closer to home and show reluctance to visit larger, busier stores.
With UK government announcing tighter restrictions on Tuesday, 22nd September, retailers will now have another opportunity to continue maximise sales and increase customer loyalty.
The report predicts that the UK convenience retail market will reach a value of £46bn by 2023, as weekly sales per store return to more typical levels in 2021 and beyond.
Katherine Prowse, insight manager at Lumina Intelligence said: “Throughout the lockdown period, convenience retailers offered a lifeline to local communities across the UK.
“Record year-on-year growth is a testament to the efforts of these frontline workers. As restrictions begin to tighten again, retailers can reassure shoppers that they will continue to support them.
“Whilst we forecast growth to normalise in 2021, this period provides the perfect opportunity for retailers to cement their position within the local community and drive loyalty in order to maintain footfall once the pandemic is over.”