Despite being regarded as the community’s lifeline, the convenience retail sector is sadly facing a consistent decline in sales. Yet, as Asian Trader reports, the tide can still be turned if retailers embrace smarter strategies, leverage technology, and remain attuned to shifting consumer demands.
Recent data from Kantar paints a stark picture. Over the past year, symbols, independents, and even the Co-op have seen their market share erode, with year-on-year sales plummeting by 5.8 per cent by January 2024. This stands in sharp contrast to the steady or rising trends observed in supermarkets like Tesco and Aldi.
The findings are corroborated by Talysis and TWC, both specialists in the UK convenience market.
Talysis’ CD:UK, an analysis based on over 13,000 stores, including 1,600 forecourts, showsthat over the last twelve months, symbols and independents’ moving annual total (MAT) has slipped by 0.61 per cent.
Ed Roberts, MD of Talysis Ltd, shares with Asian Trader, “The downward trend is even more noticeable in the latest four weeks (-2.42 per cent) and 12 weeks (-3.12 per cent), which indicates the decline has started to 'set in' more recently.”
The Christmas period, traditionally a boon for retailers, was “particularly disappointing” for the convenience sector, Roberts adds.
TWC’s SmartView Convenience data, based on 5000+ independent convenience stores and reflective of the 30,000 independent c-stores in Great Britain, echoes similar sentiment. It also shows a “4.4 per cent” YoY decline in 52-week MAT performance to 29 December 2024.
Different data reports, analysis and methodologies, yet they all are revealing the same picture, that symbols and independents are losing ground.
What is happening?
To understand what is happening, Asian Trader got in touch with leading retailers, symbol groups and retail experts. It turns out that the decline is multifaceted, driven by both internal and external factors.
Tom Fender and Sarah Coleman from TWC attribute a significant part of the decline to the ongoing slump in tobacco sales over the past couple of years.
"There is a long-term decline in tobacco – minus 9 per cent value year on year," Fender and Coleman explain. "This could also have a significant negative impact on retailers’ cash flows."
Alcohol sales have also taken a hit in the convenience channel with beer, wine, and spirits all showing continued decline.
Surprisingly and contrary to market trends, sales of low and no alcohol line too continue to remain low in independent convenience stores.
"This is a missed opportunity,” say Fender and Coleman.
Further exacerbating the convenience channel’s challenges are supermarkets and discounters’ loyalty cards and data-led strategies.
“Supermarkets are cranking up promotions,” Fender and Coleman point out. “There has been a month-on-month increase in promotions for 16 consecutive months, with an average promotion discount of 22 per cent.”
Discounters like Aldi are becoming the new “community retailers” with their tight ranges, better prices and relatively easy to shop experience as compared to “40000 sq feet supermarkets”.
Roberts from Talysis echoes these concerns, particularly the slump in tobacco sales.
“If we remove tobacco from the equation, total convenience value is actually up by +1.55 per cent MAT and +0.48 per cent in the latest four weeks,” he explains, showing just how vital the category has been to overall performance.
Accounting for 34 per cent of total convenience sales, any drop in tobacco is more than likely to see a fall in overall performance, he adds.
Ed Roberts, MD of Talysis Ltd,Talysis
In 2024, sales of tobacco (value) were down by -4.66 per cent (value) and 9.21 per cent (volume) year on year, representing a whopping “£300 million of revenue lost” to the sector.
Roberts adds, “The two biggest categories (tobacco and alcohol), which combined account for just over half of convenience value sales, are showing a decline – it’s no wonder that sales and market share in this sector are falling!”
In addition, what is emerging as a problematic aspect (surprisingly) is the sheer volume of SKUs in convenience stores.
“In the past twelve months, Talysis has seen over 6,000 different soft drinks SKUs and 8,000 alcohol SKUs selling in CD:UK. It’s fair to say that stocking and display decisions for symbols and independents can be a game changer,” Roberts adds.
Pete Patel, a seasoned retailer with 10 stores under the Costcutter and Bargain Booze banners, acknowledges the struggles facing some independent retailers though he maintains that his stores are able to buck the trend through timely investments.
"There are lots of factors, but the main factors I believe is competition, not only from supermarkets but also from online and quick commerce. In fact, it is the latter that is becoming more and more aggressive and has made things quite difficult and tricky,” Patel shares with Asian Trader.
Patel also senses a sense of uncertainty among the shoppers.
“People are tightening up. So, instead of shopping locally, they are going to the discounters more often,” he notes.
Symbol groups and wholesalers are bound to feel the impact of this downturn.
Guy Swindell from wholesale group Parfetts tells Asian Trader, “Parfetts has not explicitly identified a downward trend among Go Local retailers.
"However, there’s no doubt that the prolonged cost of living crisis and the rising cost of business are making trading difficult.”
Guy SwindellParfetts
Tailored support and promotions are crucial to ensuring independent retailers remain competitive, Swindell emphasises.
He highlights that “record numbers of retailers” are joining the Go Local symbol group, recognising the benefits of an employee-owned model that reinvests into pricing and retailer support.
What to do?
Desperate times call for desperate measures. This is exactly one of such times.
Retailer Patel strongly feels that it is time that convenience retailers let go a little portion of their margins and try to offer better prices.
Patel says, "A lot of independent retailers historically have always used higher margins. But now that people obviously are now financially struggling, you can't always get away with it, so you have got to look at your pricing and make sure that you are still competitive.
"Pricing is most important in the current climate. Even if yours is the only shop in the village, you can't still charge the margins that you used to charge five years ago because five years ago, quick online delivery wasn't so big.
“A good range of alcohol at better prices and a wide range of fresh produce also help in bringing footfall and increased baskets spend.
"Depending on the location and demographic, having a hot fresh food section also helps in increasing footfall and sales,” he says, though quickly adding that hike in wages is going to impact this section the most.
Retailer Pete Patel
Pete Patel
Agreeing with Patel’s beliefs on better pricing, data expert Fender and Coleman feel suppliers also should rethink their strategies over price marked packs for a better shared margin.
“Suppliers need to ask themselves whether the PMP price – or the PMP flash – triggers the shopper to purchase. If the latter is true, the PMP price could be raised – meaning higher shared margin and little or no decrease in sales,” suggests Fender.
Sharing the mantra for success, Fender encourages convenience retailers to focus on “five Fs- namely fresh products, full shelves, food to go, fast and friendly service and fit for purpose range”.
Offering home delivery is another key area that retailers need to focus on. Leading retailers like Atul Sodha, Natalie Lightfoot and Girish Jeeva vouch for home delivery service as their way forward to push numbers.
The latter has recently launched Scotland’s first “24-hour” delivery service and hopes to have a captive market soon.
Roberts from Talysis advises retailers to focus on key categories like soft drinks, crisps, and confectionery, which have shown growth.
“Whilst NPD can keep shoppers engaged and offer something different, it’s important to maintain a core range and ensure availability,” says Roberts, adding that retailers can use Talysiss Range Finder tool and NPD when it comes to new lines and top market sellers.
What can play a key role here is offering personalised service.
Swindell from Parfetts encourages retailers to understand and cater to local shoppers’ needs to build loyalty through personalised service, community support, and stock local products.
“Using Price Marked Packs (PMPs), targeted promotions, and selective price matching on key items can create an impression of value without cutting prices across the board. It’s why we’ve given 100 per cent of our own-label range PMP,” says Swindell.
A word of advice for independents and symbols from Tom Fender and Sarah Coleman from TWC:
Offer longer life sandwiches, coffee to go and more professional chilled ranges
Join a symbol group (if you are not already).
Listen to the advice from wholesalers.
Look at your store through the eyes of shoppers, who is walking in for the first time.
Analyse your data – learn what’s selling.
Keep on top of emerging trends.
Consider offering more services to drive footfall into your store.
Employ staff who go the extra mile· Introduce themes in your store regularly.
Embrace seasonal events – but get going early.
Wakeup call
Convenience retail industry guru Scott Annan does not like to mince his words when it comes to the mountain of problems facing the independents and symbols.
“Two major factors stand out in the decline; firstly, commercial revenue streams at wholesalers and symbols do not benefit independent retailers.
“Secondly, thousands of stores do not offer fresh, day-part food. They do not use basic retail tech and data to measure and adjust performance. They trade ‘blind’,” he says.
Scott Annan Scott Annan
A passionate campaigner of “fresh and proprietary food”, Annan also vouches for Electronic Shelf Labels to have a better hold on business.
“Some retailers such as Henderson’s NI with their excellent tech and coffee programme, and Bestway with their recent work with Triple A Foodhall in Nuneaton are some of the bright spots.
“Some symbol groups are simply ‘pushing’ core grocery SKUs into independent stores that are not required, something that I have observed in hundreds of stores that I visited across the UK and in thousands more that others regularly communicate to me,” he says.
Unless corrective actions are not taken urgently, consistent decline in sales in convenience might put off consumer packaged goods suppliers who might “reduce or redirect their trade marketing support as the share cannot justify the spend”, warns Annan.
With additional overhead costs arising from the recent Budget and impending ban on disposable vapes (another fat-margin product), 2025 is seemingly going to be a challenging time.
Convenience retailers' body Association of Convenience Stores (ACS) Chris Noice shares with Asian Trader, “We are hearing that customers are becoming more price sensitive than they have been for a long time.“
With supermarkets introducing matched pricing with discounters, it will be very difficult for a lot of convenience stores to follow because it’s a different business model with different supply chains and economies of scale.”
However, Noice sees hope in policy changes, such as the introduction of a permanently lower business rates multiplier, which could provide much-needed stability.
Convenience stores can remain competitive by focusing on what sets them apart from the competition- atmosphere in the store, products that can’t be found anywhere else, and a range of services to make people’s lives easier, Noice adds.
The convenience sector clearly stands at a crossroads. Yet, within this crisis lies an opportunity for reinvention. The road ahead is challenging, but for those willing to adapt, the future remains bright.
Convenience stores emerged as largest growing category in terms of store opening last year, a recent report has stated, showing overall decline in chain outlet closures with 2024 having the second fewest closures in a decade, reflecting an improving picture for retailers.
According to Store Opening and Closing Data 2024 by PwC, a total of 12,804 shops and outlets belonging to multiples and chains (those with five or more outlets) exited UK high streets, shopping centres and retail parks in 2024.
This is equivalent to 35 closures per day, a decrease from last year and the second fewest closures in a decade – closures were only lower in 2022.
Openings are following a similar trend, with numbers slowing slightly to 25 per day. This is an improvement from the number of store openings during the pandemic but lower than the 34 per day peak during the mid-2010s.
The fastest growing category this year was convenience stores, as large supermarket chains accelerated growth in the fastest growing store format in the UK grocery market.
In fact, the net growth of full-sized supermarkets slowed slightly from the previous year, as discounters in particular slowed down their roll out plans.
Coffee shops were the only other category with more than 1 net opening per week in 2024.
This category saw a continuation of openings out-of-town and in drive-thrus seen in previous years, as well as chains expanding into city centres as the pandemic working-from-home trend began to reverse.
When it comes to declining categories, half of all net closures are accounted for by four categories- chemists, pubs and bars, banks, and car-related outlets.
However, these net declines are generally smaller than those seen in previous years, reflecting the improving closure trend across the board, states the PwC report.
This year’s results show higher net closures in the South and East of the England, while Wales, Scotland and the North West have seen fewer net closures.
In line with last year’s results, retail parks have continued to grow in 2024, significantly outperforming other locations and maintaining the positive performance.
Encouragingly though, rates of decline have fallen across all other location types over the last year too. For instance, shopping centres have more than halved the number of closures in 2024, with their recovery being boosted by an increasing pivot to growing leisure categories.
Meanwhile even high streets have seen net closures decline by about a quarter compared with 2023.
This year’s data reinforces a continued move away from the high street, where slower openings that are unable to offset concentrated closures. In contrast, out-of-town locations are seeing fewer closures and a net increase in store openings.
The results for 2024 show improvement. Closures are stabilising with fewer one-off failures and restructurings leading to just 10 net closures per day, three less than in 2023.
However, long-run analysis does show the 2 per cent per annum decline in chain outlets is in-line with the wider trend of shopping and services continuing to move online, despite the stated preference of many younger consumers to shop in store.
Smoking rates in parts of England have increased for the first time in nearly two decades, according to new research published on Tuesday (18). Industry experts suspect misinformation around vapes and impending regulation on flavours are pushing vape users back to smoking cigarettes.
While smoking rates have decreased since 2006, the rate of decline has flatlined from 2020, and in some areas of the UK smoking rates are increasing again.
New research, by Haypp, looks into vape users' perception of harm across a range of nicotine products, highlighting a serious lack of awareness when it comes to which products are more harmful than others, potentially contributing to this rise in cigarette use.
The survey, to which all respondents were current vape users, showed that consumers did not see a significant difference in harm levels between cigarettes, vapes, and nicotine pouches.
In fact, respondents believed that the three products were similarly harmful, rating all three as being between 4.5 to 6 out of 10, on a scale from not harmful to very harmful.
This is a shocking statistic given that there is a substantial body of evidence, including NHS research, that proves that cigarettes are much more harmful than vapes and nicotine pouches.
This research coincides with the latest data from University College London, highlighting a rising issue with smoking cigarettes, and the understanding of their harm to public health.
Haypp’s latest vape report also highlights that significant number of vapes users could return to smoking cigarettes, depending on how UK laws on vaping may change:
20 per cent of current vape users would return to smoking cigarettes if vapes were no longer available to them while 37 per cent admitted they would return to smoking cigarettes if vape flavours were to be banned in the UK.
10 per cent of vape users say they may return to smoking cigarettes following the disposable vape ban in June.
Markus Lindblad, Nicotine Expert and Head of External Affairs at Haypp, said, “For many years, the UK government has had great success in reducing smoking rates.
"However, this new research, combined with Haypp’s statistics paint a very worrying picture, one that industry experts have been concerned about for some time now.
"There is a great deal of confusion amongst UK consumers as to how harmful cigarettes are compared with alternative nicotine products and most smokers wrongly believe that vaping is as harmful as cigarettes.
"UK consumers are exposed to a great deal of misinformation about vapes and nicotine pouches, and this needs to be addressed to enable people to make informed choices about less harmful nicotine products.
"Public information campaigns about the true harm levels of cigarettes compared with vapes should be facilitated by health authorities.
“As a responsible retailer, we hope to help inform nicotine users about the dangers of smoking cigarettes, and highlight the benefits of switching to alternative products, such as nicotine pouches.
"Thanks to snus and nicotine pouches, Sweden is set to become Europe’s first smoke-free country and we have further research to show that if the UK adopted similar laws, up to 28,410 lives could be saved every year.
"The importance of this type of education cannot be understated and we hope more is done to deter potentially millions of people from smoking cigarettes.”
Keep ReadingShow less
Loose produce vs. packaged produce in supermarkets
Despite being a nation of food lovers, when it comes to food waste, fresh produce are the UK’s most binned items, states a recent report, recommending that more fresh produce needs to be sold/bought loose to help break the "UK’s £1,000 a year food waste habit".
In Food Waste Action Week, Love Food Hate Waste publishes its annual Household Food Management Survey giving a snapshot of the nation’s behaviours and attitudes towards food.
Each year in UK homes an estimated 510,000 tonnes of potatoes are binned, representing 46 per cent of all potatoes bought.
The largest and longest running survey of its kind, the latest Love Food Hate Waste Household Food Management Survey show that self-reported food waste has increased to 21 per cent for the four key food items monitored (bread, milk, potatoes and chicken), meaning a fifth of these end up in the bin.
The rise in self-reported food waste recorded coincided with the easing of several key pressures that had kept food waste in check over recent years, including food price inflation and concerns about the cost-of-living and food availability.
But Love Food Hate Waste says one reason why so much fresh produce ends up in our bins is because most is sold packaged, denying shoppers a chance to buy an amount closer to their needs.
In the UK, only 19 per cent of fresh produce is sold loose by large retailers.
Jackie Baily, Senior Campaign Manager Love Food Hate Waste, “We see fresh produce as the real kitchen victim when it comes to food waste. Because most fruit and veg is sold packaged, we have to buy what we’re given not what we need, and that means a lot goes to waste.
"As a result, our bins have a diet that most nutritionists would envy. And we’re a long way from breaking our food waste habit because of this packaging.”
Ahead of the roll out of separate food waste collections in England, Love Food Hate Waste is keen to help people reduce the amount of fresh fruit and vegetables ending up in the bin through better access to loose produce.
An estimated 60,000 tonnes of food waste could be prevented if all apples, potatoes and bananas were sold loose, representing 8.2 million shopping baskets’ worth of food.
Love Food Hate Waste is using Food Waste Action Week to show the growing public demand for more loose fruit and veg in the fresh produce aisles. And WRAP, the environmental action NGO behind Love Food Hate Waste, is also calling for a consultation for a potential ban on packaging for 21 products in the fresh produce aisles.
Food waste made flesh
Love Food Hate Waste found that our ability to judge how much is the right amount to buy has weakened slightly for the first time in several surveys and that except for bread, most people find judging the right amount of fresh produce trickier than any other product – particularly potatoes.
When it comes to buying loose, people enjoy not having a date label on loose fresh produce and we’re happy to use judgement alone on when fruit and vegetables are still good to eat far more than a Best Before date - most noticeably for onions (75 per cent).
Outside of the fresh produce category, people use date labels (Use-By) for items for which food safety is an issue, such as fresh chicken and pork. But for milk, we’re evenly split between using our judgement or a date label.
On a per capita basis, the latest survey suggests that 27 per cent of UK citizens classify as ‘higher’ food wasters. In addition, Love Food Hate Waste found a disparity between people’s perception of their own waste and the reality, with nearly 8 out of 10 interviewees believing they waste less than the average.
Food waste occurs across all sociodemographic groups in the UK, without exception. But Love Food Hate Waste warns that certain groups are more prone to falling into the high food waste category.
Higher levels of food waste were concentrated among younger people, those with children and those with a higher number of displaced meals (when plans change last minute, or something happens meaning we don’t eat the food we’d planned at home).
In addition, Love Food Hate Waste found a link between people who use alternative methods of food shopping and higher levels of reported food waste, albeit a far lesser number.
This includes those who use Click and collect (38 per cent higher food waste), fruit and veg box schemes (48 per cent), subscription delivery (47 per cent) and delivery companies (40 per cent).
Love food Hate Waste has put forward a range of recommendations to help mitigate against household food waste.
These include making it easier to purchase the right amount of food through better access to loose produce, introducing smaller pack sizes at comparable prices and curbing in-store promotions encouraging over-purchasing for perishable foods (e.g., impulse-driven multibuy offers).
And enhancing individual citizens’ skills in meal planning and portion estimation.
Grocers are set to benefit on Mother's Day this year as more consumers are expected to have a special meal at home, states a recent report, adding that spending on Mother’s Day is set to reach £2.4 billion in 2025.
According to GlobalData Retail Mother’s Day Intentions Report 2025, the proportion of UK consumers planning to purchase at least one item for Mother’s Day 2025 has risen to 56.4 per cent, a 2.9ppt increase on 2024.
Grocers will benefit from decreased interest in takeaways and dining out this year. 17.5 per cent of Mother’s Day shoppers plan to have a special meal at home with mum, a 3.1ppt increase on 2024.
Dine-in options are crucial, given that Mother’s Day shoppers intend to spend £52.32 on average on food and drink for the event. There will be plenty of room in consumers’ budgets to trade up to premium ranges.
Furthermore, consumers plan to spend £17.43 more on their mums than last year, resulting in an average spend of £125.30. Gifting will be the most popular expense this year, with categories such as clothing, fine jewellery and watches and health and beauty among the most sought-after.
Eleanor Simpson-Gould, Senior Retail Analyst at GlobalData, comments, “Retailers should offer personalised gifting options, including customised clothing, bespoke jewellery pieces, and curated beauty gift sets.
"Providing unique and thoughtful gifts will appeal to the customers looking to make a special gesture on Mother's Day. Additionally, retailers must enhance the shopping experience by offering gift-wrapping services and convenient delivery options to make the process seamless for shoppers.”
Simpson-Gould adds. “The UK consumers are prioritising quality time at home with their mums this Mother’s Day, focusing on special meals, presenting a lucrative opportunity for grocers.
"Upselling opportunities include luxury wines, champagnes, confectionery, and premium meats, and grocers must focus on catering to these preferences to maximise sales potential.”
According to the report, 62.5 per cent of Gen Z consumers agree that “retailers do not do enough to provide gift inspiration.” This sentiment is far higher than that of their cohorts. Almost half of this age group plan to spend more on Mother’s Day this year.
Simpson-Gould concludes, “Retailers must engage with Gen Z shoppers on key social media platforms such as TikTok and Instagram to promote affordable Mother’s Day gift ideas, offering exclusive discounts and engaging content to attract budget-conscious shoppers.
"Next-day delivery options will be a significant draw for this age group. Given that 63.8 per cent of Gen Z shoppers agree they ‘tend to leave Mother’s Day shopping until the very last minute’ online retailers offering expedited delivery stand to benefit the most from the expenditure ahead of the event.”
Retail crime is on the rise and the impact on staff, businesses and communities can be overwhelming, shows a Scottish retail industry's report released today (13), prompting calls from retailers for urgent support.
Figures published in the SGF Crime Report & Safer Business Guide 2024/25, reveal the appalling escalation in retail crime in recent years is only getting worse, while the sector continues to call for urgent action from government.
Findings gathered from convenience retailers all over Scotland by the trade association show that almost two thirds of stores (62.5 per cent) now have at least one member of staff who has experienced mental health and wellbeing issues as a result retail crime.
While 83.5 per cent of those surveyed report an increase in violence toward shop workers.
Adding to that, the average cost of retail crime skyrocketed to £19,673 per store in 2024-25 (up 38 per cent from the previous year).
Scaling up the sample to represent all 5,220 convenience stores in Scotland, this accounts for an annual cost of approximately £102.7 million which is crippling the sector.
Information gathered for the report and published during the SGF annual Crime Seminar, being held at Doubletree by Hilton, Edinburgh, shows that almost all (99.8 per cent) convenience retailers agree that shoplifting has increased in the past year, while 99.5 per cent say that shoplifting is now a daily occurrence.
More than eight out of every ten stores report that Hate Crime occurs once a month, while almost all say that violence against staff occurs at least once a month (83.3 per cent and 99.6 per cent respectively).
Likewise, almost all (98.8 per cent) of respondents also report experiencing weekly incidents of abuse when refusing a sale or when asking for proof of age.
SGF Chief Executive, Dr Pete Cheema OBE, said, “The reality for many shop workers across Scotland is that each time they go to work, they risk being assaulted, stabbed, spat on, threatened, or abused.
"Our latest Crime Report which has been published at the SGF Crime Seminar in Edinburgh today, shows the true extent of crime devastating the Scottish convenience sector.
“Across every metric, retail crime is on the rise and the impact on staff, businesses and communities can be overwhelming. That is why we have named our event today ‘Retail Crime - A Threat We Can’t Ignore!’, and our question to the government is, what will it take for decision makers to act?
“Retailers desperately need urgent support, now. The police and courts can’t cope, and many crimes are going unreported because retailers don’t believe the authorities will respond.
"Offenders know they’re unlikely to face any consequences for their crimes and even if they are arrested, many will spend years awaiting conviction.
“Finally, I want to thank everyone who helped make today’s event a reality, we have some wonderful speakers from the likes of Police Scotland, Facewatch and Holyrood. Without their support and the support of our members and sponsors, SGF would not have the impact we do.”
Analysis of the data also reveals a fall in confidence in the Scottish Justice System to tackle the growing problem of retail crime. With, for example, almost half (48.2 per cent) of respondents saying they are either unlikely or very unlikely to report shoplifting incidents to the police.