The convenience retail market within the UK is projected to grow 8% to £44.7 billion, according to the new UK Convenience Market Report 2020 by HIM & MCA Insight.
In terms of store types, co-operatives are expected to see a 12% growth, followed by unaffiliated independents at 11%, symbol stores at 7%, forecourt stores at 6% and convenience multiples at 6%.
In 2019, the convenience retail market grew by 2.6%.
Impact Of Pandemic
Convenience retail has benefitted from larger basket sizes and spend since the onset of the coronavirus pandemic, the report said.
Basket value has seen a 17% year-on-year to £7.46, while the average basket size now stands at 2.5 items, up from 2.3 in 2019.
Head of insight at HIM & MCA Insight, Blonnie Walsh, commented, “The turn of the decade has seen a transformative year for the convenience retail market. Convenience retailers have been forced to adapt to new basket dynamics and an evolving core consumer base.
“A shift in shopper missions has resulted in increased basket spend and size, rewarding retailers for the support and commitment they have shown to their local communities.”
Opting For The Convenience Market
The study also found that customers turned to convenience retail for main and planned top-up shopping, with independent retailers more flexible when faced with stock pressures.
Planned top-up shopping saw a 4 percentage point growth on a year-on-year basis, accounting for 22% of all convenience trips in 2020.
Walsh added, “Provenance has been a growing trend for some time, and we continue to see increases in the proportion of shoppers choosing a particular store in order to support local businesses.
“The lockdown will only have accelerated this trend and retailers can leverage this by highlighting local credentials, including work with local suppliers.”