Stay ahead of the curve in the convenience stores market and future-proof your business with Mintel’s UK Convenience Stores Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry, alongside data-driven recommendations. Get a 360° view of the convenience store market including market size, share and forecasted growth to help you align your business strategy with your audiences’ needs. Below, we’ve handpicked key insights from the full report.
Topics Analysed in this Report
- The impact of the cost of living crisis on the convenience store market and market size.
- How government legislation influences the UK convenience store market.
- The most popular convenience stores in the UK.
- The services used at convenience stores.
- Consumers returning to the high street and city centres driving footfall for convenience stores.
- Reasons for shopping at one convenience store over another.
- Shifting consumer behaviour brought on by the cost of living crisis.
UK Convenience Store Market Outlook
With many consumers currently feeling the impact of the cost of living crisis, especially around rising food and drink prices, this poses a threat to the UK convenience market. Convenience retailers, therefore, need to ensure prices are as competitive as possible while also continuing to promote the convenience of shopping locally. Contrastingly, Mintel’s predicts that the convenience market will experience value growth, but much of this will be driven by inflation.
- UK convenience store market size: Mintel forecast value growth in all convenience retail sales to be positive through to 2027, growing 17.5% and reaching £58,066 million.
UK Convenience Store Market Trends: What consumers want and why
Alternative to foodservice outlets
The real or perceived price-premium for shopping at convenience stores presents barriers in the short-term for the UK convenience market, with many consumers switching to lower-cost retailers. However, within the full report, Mintel provides insight into how convenience stores can position themselves as a value alternative to foodservice outlets, as over half of convenience store users would consider buying premium ready-to-cook products as a cheaper alternative to ordering a takeaway.
- UK convenience store market opportunity: 66% of convenience store users would consider buying premium ready-to-cook products as a cheaper alternative to ordering a takeaway.
Convenience stores offer more than just groceries
Mintel’s analysis reveals that convenience stores can offer more than just groceries for consumers, and the services they offer can help further drive footfall into their stores. Parcel services are increasingly popular, particularly among 16-34s and city dwellers who shop online. Offering full-range collection and returns in convenience stores is key to engaging these key demographics.
- UK convenience store market opportunity: 71% of UK consumers have made use of additional services at convenience stores.
To learn how to connect with your audience, purchase our full UK Convenience Store Market Report 2023. Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.
Leading Brands in the UK Convenience Store Market
Tesco Express, Co-Op, M&S, Spar, Sainsbury’s Local, Costcutter, Asda Express, Premier, Londis, McColls, Amazon Fresh, Morrisons Daily, One Stop, Little Waitrose, Budgens.
Expert Insights from a Retail Industry Analyst
This report, written by Bridget McCusker, a leading analyst, delivers in-depth commentary and analysis to highlight current trends in the UK convenience store market and add expert context to the numbers.
On-the-go consumption returned more strongly in 2022 as a result of an uptick in consumer movement, and convenience retailers can position on-the-go and food-for-tonight options as a value alternative to out-of-home foodservice venues.”
Bridget McCusker
Research Analyst
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for convenience stores
- Figure 1: Category outlook, 2023-27
- The market
- Market size and forecast
- Figure 2: Market forecast for convenience stores, 2023-27
- Consumers feel the impacts of rising prices
- Figure 3: CPIH 12-month rate for January 2022-January 2023, based on category
- Companies and brands
- Tesco the dominant player
- Figure 4: Leading convenience stores, market shares, 2023
- Investment into convenience will add further competition
- Figure 5: Asda rolls out Asda Express, 2023
- The consumer
- Convenience retailing continues to remain important amidst the cost of living crisis
- Figure 6: Items typically bought from convenience stores, 2020-23
- 69% of shoppers visit convenience stores at least once a week
- Figure 7: Frequency of convenience store visits, 2021-23
- Convenience stores offer more than just groceries
- Figure 8: Services used at convenience stores, 2022-23
- Consumers are buying more from convenience stores
- Figure 9: Usage of convenience stores for food for the home, 2021, 2022 & 2023
- On-the-go food purchases go up as people return to city centres
- Figure 10: Usage of convenience stores for food on-the-go, 2020-23
- Tesco’s larger store estate maintains its broad appeal
- Figure 11: Stores used by regular convenience store shoppers, 2021, 2022 and 2023
- Proximity drives missions to convenience stores
- Figure 12: Reasons to shop at one convenience store over another, 2023
- Convenience stores need to address the concerns of consumers
- Figure 13: Attitudes towards convenience store shopping, 2023
- The five-year outlook for convenience stores
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Issues and Insights
- Cost of living drives value for money
- Future impacts of government imposed legislation
- Restrictions on HFSS products will shake smaller convenience stores
- Scotland set to introduce its DRS in 2024
- Scotland explores the ban on alcohol displays
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Market Size and Performance
- Return of footfall helps to drive growth for convenience stores
- Convenience demand rebounds post-pandemic
- Figure 14: Market size for convenience store sector, 2017-22
- Figure 15: Convenience store market size 2017-22
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Market Forecast
- Convenience sector will continue to grow in the years ahead
- Figure 16: Convenience store outlook, 2023-27
- Convenience spending is impacted by inflation
- HFSS legislation will impact impulse purchasing
- The convenience sector will continue to have steady growth into 2027
- Figure 17: Market forecast for the convenience sector, 2022-27
- Learnings from the last income squeeze
- Forecast methodology
- Convenience sector will continue to grow in the years ahead
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Market Drivers
- Inflation is the key concern for consumers and brands…
- …and most people are feeling the effects of price rises
- Figure 18: CPI rates across key categories, 2022-23
- Further interest rate increases will hit mortgage holders
- High inflation and rising interest rates will compound the impact of the slowing recovery
- Consumer spending power will be curbed
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- Figure 19: All retail value and volume sales (excluding fuel, non-seasonally adjusted), 2022-23
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Convenience Store Shoppers
- Convenience store usage experiences slight uptick
- Cigarettes and rolling tobacco continue to decline as vaping remains steady
- Non-alcoholic drinks have experienced a slight uptick in purchasing
- Figure 20: Items typically bought from convenience stores, 2020-23
- Those returning to the office are seeking out ready foods
- Figure 21: Usage of convenience stores, by work location, 2023
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Frequency of Convenience Stores Used
- 69% of shoppers visit convenience stores at least once a week
- Rising costs of living lead to greater planning for shops
- Figure 22: Frequency of convenience store visits in 2021, 2022 and 2023
- Those in more rural areas plan their visits to convenience stores
- Figure 23: Frequency of convenience store visits, by residential area, 2023
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Services Used in Convenience Stores
- Convenience stores offer more than just groceries
- ATM usage remains to be top for shoppers
- Figure 24: Services used at convenience stores, 2023
- Parcel services a growing driver for footfall at convenience stores
- Figure 25: Services used at convenience stores, by age, 2023
- City-dwellers go out to get their coffee
- Figure 26: Uses of services at convenience stores, by area, 2022 and 2023
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In-home Food Purchasing
- Food-for-home purchasing in convenience stores grows
- Figure 27: Usage of convenience stores for food for the home, 2021, 2022 & 2023
- Those in tighter financial situations have turned to food items with longer shelf life
- Figure 28: Types of items purchased at convenience stores, by current financial situation, 2023
- Food-for-home purchasing in convenience stores grows
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On-the-go Food Purchasing
- On-the-go food purchases grow as footfall picks up
- Figure 29: Usage of convenience stores for food on-the-go, 2021, 2022 & 2023
- Those working in a blended environment are buying more on-the-go foods
- Figure 30: Usage of convenience stores for food-to-go items based on working environment, 2023
- Snacks remain popular across all age groups
- On-the-go food purchases grow as footfall picks up
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Convenience Stores Visited
- Tesco maintains a convenient lead
- Figure 31: Stores used by regular convenience store shoppers, 2021, 2022 and 2023
- Tesco’s vast store estate drives appeal across all demographics
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- Figure 32: Profile of shoppers at leading convenience stores, by age and income, 2023
- Location drives how convenience users shop
- Figure 33: Repertoire of convenience stores typically used, 2023
- Tesco maintains a convenient lead
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Reasons for Shopping at Convenience Stores
- Shoppers want convenience when shopping
- Figure 34: Reasons to shop at one convenience store over another, 2023
- Proximity to convenience store is a competitive advantage for retailers
- Figure 35: TURF analysis – Convenience stores, February 2023
- Convenience stores need to have broad offerings to support consumer missions
- Figure 36: Types of factors prompting consumers to choose a convenience store over another, 2023
- Young men seek efficiency while shopping at convenience stores
- Figure 37: Reasons to shop at convenience stores, by age and gender, 2023
- Quality is a key concern for young women
- Figure 38: Reasons to shop at convenience stores, by age and gender, 2023
- Shoppers want convenience when shopping
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Impact of the Cost of Living Crisis on Convenience Shoppers
- Cheaper product alternatives drive consumers to switch stores
- Figure 39: Attitudes towards price rises impacting convenience store shopping, 2023
- The middle feels the squeeze while they do their grocery shops
- Figure 40: Attitudes towards price rises impacting convenience shopping by gender and age, 2023
- Convenience stores need to tap into the revival of loyalty schemes
- Figure 41: Attitudes towards convenience stores regarding loyalty schemes, 2023
- Loyalty schemes remain popular amongst all consumers
- Figure 42: Attitudes towards convenience stores regarding loyalty schemes based on age and gender, 2023
- Cheaper product alternatives drive consumers to switch stores
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Attitudes Towards Meal for Tonight
- Shoppers are seeking ways to save rather than going out amidst price rises
- Those with families seek convenience when getting ready-to-cook meals
- Convenience stores in cities have the opportunity to introduce restaurant-branded ranges
- Figure 43: Attitudes towards premium offerings at convenience stores, 2023
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Attitudes Towards Technology in Convenience Stores
- Technology can be a barrier to more convenience
- Rapid delivery presents opportunity and threat for c-stores
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- Figure 44: Attitudes toward convenience stores offering additional services, 2023
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Competitive Strategies
- Convenience stores and their place in the grocery sector
- Major grocery multiples
- Tesco leads the way with convenience retailing
- M&S ramping up its food offering
- Sainsbury’s to refocus on its convenience format
- Asda expands its convenience ambition
- Morrisons re-enters the sector with McColl’s acquisition
- Figure 45: Leading multiples, key metrics, 2023
- Co-operative groups
- Leading co-operatives
- Figure 46: Leading Co-operatives’ sales, 2019/20-2022/23
- Figure 47: Leading Co-operatives’ outlets, 2019/20-2022/23
- Figure 48: Leading Co-operatives’ sales per outlet, 2019/20-2022/23
- Symbol groups
- Spar continues to innovate its offerings
- Bestway looks to better integrate Costcutter
- Nisa partnership with Co-op drives its success
- Figure 49: Leading symbol groups, 2022
- Petrol Forecourts
- Figure 50: Total number, and breakdown in ownership of, UK forecourts, 2018-22
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Leading Retailers
- Tesco the dominant player in the convenience sector
- Co-op plans to bring greater competition for the convenience sector
- M&S focuses on its Simply Food format
- Sainsbury’s looks to invest in its store estate
- Figure 51: Leading convenience stores’ sales, 2019/20- 2022/23
- Many retailers are ramping up their convenience offerings
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- Figure 52: Leading convenience stores’ outlet numbers, 2019/20-2022/23
- Sales-per-outlet demonstrates differences between store types
- Figure 53: Leading convenience stores’ sales per outlet, 2019/20-2022/23
- A note on estimations
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Market Share
- Tesco and the Co-op account for nearly half of the convenience market
- Figure 54: Leading convenience stores, market shares, 2023
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- Figure 55: Leading convenience retailers’ market shares 2018-22
- Tesco and the Co-op account for nearly half of the convenience market
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Launch Activity and Innovation
- New entrants to the convenience space
- Asda launches Asda Express
- Figure 56: Asda rolls out Asda Express, 2023
- Iceland set to roll out more Swift formats
- Figure 57: Iceland rolls out their convenience format, Swift, 2023
- Morrisons expands its offerings
- Morrisons partnership with independent convenience store
- Deliveroo opens its first HOP store in London
- Figure 58: Deliveroo launches Deliveroo HOP store with Morrisons, 2023
- Technology creates disruption in convenience for consumers
- Amazon Fresh struggles for consistent traffic
- More retailers attempt the checkout-free format
- Figure 59: Sainsbury’s checkout-free format with just walk out technology
- Figure 60: Tesco new self-checkout tills, May 2022
- Bettering the convenience for consumers
- Delivery services partnering with convenience stores
- Autonomous food delivery
- Figure 61: Co-op launches automatic delivery in some locations
- Retailers offering price locking initiatives in the wake of the cost-of-living crisis
- Figure 62: Swift over-60s promotion, March 2023
- Food-to-go expansion
- Restaurants launching selections of its dishes to convenience stores
- Figure 63: Ensalada bar by Burrito Kitchen at Tesco Express Goodge Street, March 2023
- Cost of living impacting health-based initiatives at convenience stores
- Figure 64: Sainsbury’s local HFSS in-aisle candy promotion, March 2023
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Advertising and Marketing Activity
- Marketing activity ahead of pre-pandemic levels
- Figure 65: Total above-the-line, online display and direct mail advertising expenditure by UK supermarket and convenience store operators, 2019-22
- Convenience retailers continue to stress value through its advertising
- Figure 66: Leading UK supermarket and convenience store operators’ recorded above-the-line, online display and direct mail total advertising expenditure, 2019-22
- Outdoor grows amid the return of pre-pandemic life
- Figure 67: Recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarket and convenience store operators, by media type, 2019-22
- Nielsen Ad Intel coverage
- Marketing activity ahead of pre-pandemic levels
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Brand Research
- Brand map
- Figure 68: Attitudes towards and usage of selected brands, 2023
- Key brand metrics
- Figure 69: Key metrics for selected brands, 2023
- Brand attitudes: Co-op leads in trust
- Figure 70: Attitudes, by brand, 2023
- Brand personality: Convenience shoppers seek accessibility when completing shops
- Figure 71: Brand personality – Macro image, 2023
- M&S has a more premium brand perception
- Figure 72: Brand personality – Micro image, 2023
- Brand analysis
- M&S Simply Food
- Co-op Food
- Tesco Express
- Sainsbury’s Local
- Spar
- Brand map
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Appendix – Data Sources, Abbreviations and Supporting Information
- Financial definitions
- Trade definitions
- Abbreviations
- Consumer research methodology
- Turf methodology
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Appendix: Forecast Methodology
- Market forecast and prediction intervals
- Figure 73: All convenience stores sales, current price prediction intervals, 2021-26
- Figure 74: Convenience retail sales forecast (including VAT), current price prediction intervals, 2022-27
- Market drivers and assumptions
- Forecast methodology
- Market forecast and prediction intervals
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