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Viewing report
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Convenience Retailing Market Report 2001
Key Note Publications Ltd, Jan 2001
Convenience store retailing in the UK now has a recognisable identity, and retailers can expect an increasing challenge as the major food multiples compete to improve their share of the market for secondary grocery shopping. Key Note estimates that in 2000, total sales reached £17.13bn, from 43,592 convenience store outlets.
On the petrol forecourts - already in second place in terms of total market share - the oil companies are investing in new formats designed to capture more shop sales from passing motorists and nearby communities. Product ranges are likely to expand, with more food and drinks `on the move', take-away, ready meals and food services being introduced.
It is forecast that the levels of business enjoyed by unaffiliated independent convenience store traders will continue to suffer in the early years of the 21st century, as more traders seek to improve their business by converting to a symbol trading format, are acquired by convenience multiples, or are forced out of business by the increasingly competitive environment.
Research shows that, next to price, the range and quality of products offered are paramount in the minds of customers shopping in convenience stores. Constant attention is needed to the range content and quality, and how it is replenished and displayed. An expanded range of in-store services to repeatedly bring customers into the store is also very important.
Consumers are eating less and preparing fewer meals at home. Take-aways, snacking, ready meals and food services are gaining in popularity. However, these need to be carefully targeted to match the needs of individual local communities. As store numbers reduce, convenience stores that remain will become more professional, and better able to compete and utilise the primary asset of a good convenience store - its location.
Key Note forecasts that overall convenience store sales will increase by 9% between 2001 and 2005.
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