Food and grocery spending in UK convenience stores is expected to reach £43.2 billion by 2028, surpassing the growth of supermarkets and discounters, according to recent projections from GlobalData.
The expansion of convenience stores is gaining momentum in the UK, with major supermarkets like Tesco, Sainsbury’s, Asda, and Morrisons adding 800 new convenience outlets between 2023 and 2024. This growth was predominantly driven by acquisitions, with Asda and Morrisons leading the charge.
In an economic climate where the cost-of-living crisis remains a concern, UK supermarkets initially focused on competitive pricing within larger format stores. However, GlobalData suggests that these supermarkets should now pivot to agile pricing strategies in their expanding convenience store formats to maintain consumer appeal.
Sainsbury’s, for instance, has extended its Aldi Price Match scheme to include convenience stores. Meanwhile, Tesco has cut prices on over 200 products in its Express outlets. According to Aliyah Siddika, a retail analyst at GlobalData, this strategy allows retailers to boost impulse purchases by making essential goods more affordable within convenience settings.
Siddika further emphasised the importance of directing price promotions toward items that are popular during the workweek. These include food-to-go options, ready meals, quick dinners, and treats targeting commuters. This approach aims to capture spending from customers on the move while avoiding a dip in sales at larger supermarket locations.
By focusing on these specific product categories, supermarkets can encourage frequent visits to their larger stores for regular shopping while promoting impulse buys at their convenience outlets.
In conclusion, the strategic shift towards enhancing convenience store operations through targeted pricing and product offerings is set to redefine grocery retail in the UK. Supermarkets are poised to capture a growing share of consumer spending by aligning their convenience offerings with customer needs during the workweek.
