Food and grocery sales in UK convenience stores are expected to surge, outpacing hypermarkets, supermarkets, and discounters by 2028, according to industry insights from GlobalData.
The projected increase in convenience store revenues to £43.2 billion marks a significant shift in the retail landscape. This trend emerges amidst a period where major UK supermarkets such as Tesco, Sainsbury’s, Asda, and Morrisons have intensified their focus on expanding their convenience store offerings. Notably, between 2023 and 2024, these retailers collectively added 800 new convenience stores to their portfolios, with Asda and Morrisons driving growth through strategic acquisitions.
Aliyah Siddika, a retail analyst from GlobalData, highlights that supermarkets have adeptly used pricing strategies within larger store formats to attract customers during challenging economic times. However, a shift is now required towards agile pricing in the convenience sector to maintain competitiveness. Sainsbury’s, for instance, has pioneered by extending its Aldi Price Match scheme to convenience stores, while Tesco has reduced prices on a substantial number of products within its Express stores.
This adjustment in pricing strategies for smaller formats is likely to boost impulse purchases due to the increased affordability of goods,” Siddika remarks. She further explains that convenience retailers should focus on offering better deals on items favoured by working individuals, such as ready meals, quick dinners, and snacks, to capture spending from commuters. This approach can help prevent reduced sales in their larger stores while continuing to attract a distinct customer base for weekly shopping trips.
The evolving landscape suggests that UK convenience stores are on a trajectory to significantly outpace traditional supermarkets in growth. Retailers are advised to tailor their pricing and product strategies to leverage the unique shopping behaviours associated with convenience stores, ensuring sustained consumer engagement and market expansion.
