Table of Contents
Introduction
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- Definitions
- A convenience store
- Financial definitions
- Financial definitions used are:
- Space allocation methodology
- Abbreviations
Issues in the Market
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- What has been the impact of the grocery multiples’ move into convenience?
- How can independents compete with the grocery multiples?
- What are the prospects for the symbol groups?
- What are the opportunities for the sector as a whole?
- And where is there scope for improvement?
Executive Summary
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- The market
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- Figure 1: Convenience stores sales, 2006-16 (fore)
- Market factors
- Companies, brands and innovation
- Structure
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- Figure 2: Breakdown of convenience store sector sales by type of retailer, 2011
- Market shares
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- Figure 3: Leading c-store operators’ share of sector sales, 2009-11 (est)
- Innovations
- Space allocation
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- Figure 4: Major C-store operators, summary space allocations, 2012
- The consumer
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- Figure 5: Convenience stores purchased from in the past 12 months, February 2012
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- Figure 6: Frequency of purchasing from convenience stores, February 2012
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- Figure 7: Attitudes to shopping at convenience stores, February 2012
- What we think
Future Opportunities
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- Trend: Experience is all
- Trend: Let’s make a deal
The Market Environment
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- Key points
- New tobacco legislation
- Sunday trading liberalisation
- Inflation
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- Figure 8: Consumer prices inflation, selected categories, Jan 2010-Feb 2012
- Figure 9: Year-on-year change in food commodity prices, Jan 2011-Feb 2012
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- Figure 10: Consumer prices inflation in automotive fuel, Jan 2011-Feb 2012
- The squeeze on consumers
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- Figure 11: Annual % change in retail prices index and average earnings, Jan 2007-Jan 2012
- Macro-economic indicators
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- Figure 12: Real-terms GDP growth, Q1 2006-Q4 2011
- Figure 13: Consumer confidence and retail trade confidence levels, Mar 2011-Feb 2012
- Smaller households
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- Figure 14: Percentage of total UK population living in one-person and two-person households, 1985-2008
Consumer Spending
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- Key points
- 2012 spending forecast overview
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- Figure 15: Forecast consumer spending on in-home food, off-trade beverage, and newsagents goods categories, 2012 (est)
- Spending on food
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- Figure 16: Consumer spending on in-home food by category, 2006-12
- Spending on in-home food relative to dining out
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- Figure 17: Spending on in-home food as a proportion of spending on dining out/takeaways, 2006-12
- Spending on beverages
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- Figure 18: Consumer spending on non-alcoholic beverages, 2006-12
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- Figure 19: Consumer spending on alcoholic beverages, 2006-12
- Spending on newsagents goods
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- Figure 20: Consumer spending on newsagents goods, 2006-12
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Focus on fresh
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- Figure 21: Morrisons’ M-Local stores
- Food to go
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- Figure 22: Rewe To Go, Cologne
- Prominence for provenance
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- Figure 23: Quality From Small Producers website, April 2012
- Figure 24: Whistlestop’s in-store promotion of foods from small producers, April 2011
- New fascia
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- Figure 25: The new Kwiksave fascia
- New own brands
- Brand-building on the go
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- Figure 26: Albert Heijn To Go’s new mobile site
- Quick and easy payment
- New value segment
- Online collection opportunities
Sector Size and Forecast
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- Key points
- Grocers’ retail sales
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- Figure 27: Retail sales, 2006-12
- C-stores: performance and prospects
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- Figure 28: Convenience stores sales, 2006-16
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- Figure 29: Convenience stores sales, 2006-16 (fore)
- Forecast methodology
- How Mintel constructs its sector size
Space Allocation Analysis
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- Leading retailers space allocations
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- Figure 30: Leading C-store operators: Summary space allocation estimates, 2012
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- Figure 31: Major C-store operators, summary space allocations, 2012
Retail Product Mix
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-
- Figure 32: Sales of food, drink and tobacco in C-stores in 2011 (est)
- Estimated sales mix
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- Figure 33: Leading C-stores, estimated sales mix, 2011
- Sales density
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- Figure 34: Leading convenience stores, estimated sales density by product, 2011
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Leading Retailers
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- Key points
- The grocers and the symbol groups
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- Figure 35: Breakdown of convenience store sector sales by type of retailer, 2011
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- Figure 36: Estimated aggregate convenience store sales of grocery multiples and major symbol groups, 2010 and 2011
- Sales per outlet: the leaders
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- Figure 37: Major convenience store operators ranked by sales per outlet, 2010/11
- The top 25 by revenues
- Symbol groups
- Grocers
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- Figure 38: Leading convenience store retailers, 2010/11
Market Shares
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- Key points
- In summary: the top five
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- Figure 39: Leading c-store operators’ share of sector sales, 2009-11 (est)
- In detail: the major operators
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- Figure 40: Leading c-store operators’ share of sector sales, 2009-11
Retail Advertising and Promotion
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- Key points
- Ad spend by sector leaders
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- Figure 41: Main media advertising spend, by leading grocers/convenience store operators, 2007-11
- Spending relative to turnover
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- Figure 42: Leading convenience store retailers’ advertising spending as % of turnover, 2007-10
- Spending by media
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- Figure 43: Leading grocers/convenience store retailers’ main media advertising distribution, by media, 2011
- Major TV campaigns
The Consumer – Who Shops Where?
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- Key points
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- Figure 44: Convenience stores purchased at in the last 12 months, February 2012
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- Figure 45: Convenience stores purchased at in the last 12 months, February 2012
- Tesco Express and the Co-operative neck and neck
- Continued expansion of Sainsbury’s Local and M&S Simply Food has eclipsed older brands
- Fragmented market
- Brand differentiation points of difference
- Profiling c-store customers
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- Figure 46: Profile of C-store shoppers, February 2012
- Narrow repertoire usage
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- Figure 47: Repertoire of convenience stores purchased at in the last 12 months, February 2012
- Changing brand usage – supermarket sweep
The Consumer – Use of Convenience Stores
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- Key points
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- Figure 50: Frequency of purchasing from a convenience store, February 2012
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- Figure 51: Frequency of purchasing from a convenience store, February 2012
- Increasing basket size among high frequency users
- Affluent, high frequency visitors a key user group
- Use of leading c-stores
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- Figure 52: Frequency of purchasing from a convenience store, by most popular convenience stores purchased at in the last 12 months, February 2012
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- Figure 53: Frequency of purchasing from a convenience store, by next most popular convenience stores purchased at in the last 12 months, February 2012
The Consumer – Amount Spent in Convenience Stores
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- Key points
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- Figure 54: Amount spent in the last week at a convenience store, February 2012
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- Figure 55: Amount spent in the last week at a convenience store, February 2012
- The importance of identifying high spending shoppers
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- Figure 56: Proportion of amount spent in the last week at a convenience store, by expenditure band, February 2012
- Who are the highest spending c-store shoppers?
The Consumer – Consumer Attitudes towards Convenience Stores
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- Key points
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- Figure 57: Consumer attitudes towards convenience stores in the last 12 months, February 2012
- The impact of negative perceptions of price
- Essential items
- Special offers and impulse buying
- High interest in local produce in c-stores
- Mainly use forecourt c-stores and not the most local c-store
- Interest in c-stores as pick up points
- Limited satisfaction with convenience stores
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- Figure 58: Satisfaction with convenience stores, January 2012
- Price and promotions are key grounds for desertion
- Continued opportunities to improve availability
- Fresh food offer still not right
- Brand strengths and weaknesses
- Local produce
- Diverse basket content
- Symbol shoppers want better value
- Best for impulse
- Online an opportunity for independents
Co-operative Group (Food)
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-
- Figure 59: Co-operative Group consumer profile by age and affluence, March 2012
- Figure 60: Co-operative Group Food: Sales as share of all C-store retailers’ sales in UK, 2007-11
- Strategic evaluation
- Background
- Company performance
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- Figure 61: Co-operative Group (food): Group financial performance, 2007/08-2011/12
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- Figure 62: Co-operative Group (Food): Outlet data, 2007/08-2011/12
- Retail offering
- Space allocation
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- Figure 63: Co-op, Summary space allocation, 2012
- Figure 64: The Co-operative group, Detailed space allocation estimate, 2012
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- Figure 65: Co-operative group, estimated product sales and sales densities, 2012
- Consumer profile
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- Figure 66: Co-operative Group (Food) consumer profile, demographics, February 2012
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- Figure 67: Co-operative Group (Food) consumer profile, region, February 2012
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- Figure 68: Co-operative Group (Food) consumer profile, ACORN group, February 2012
- E-commerce
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Costcutter Supermarkets Group
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- Figure 69: Costcutter consumer profile by age and affluence, March 2012
- Figure 70: Costcutter Supermarkets Group: Estimated sales as share of all C-store retailers’ sales in UK, 2007/08-2011/12
- Strategic evaluation
- Background
- Company performance
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- Figure 71: Costcutter Supermarkets Group: Group financial performance, 2006/07-2011/12
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- Figure 72: Costcutter Supermarkets Group: Outlet data, 2006/07-2010/11
- Store formats
- Retail offering
- Space allocation
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- Figure 73: Costcutter, Summary space allocation, 2012
- Figure 74: Costcutter, Detailed space allocation estimate, 2012
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- Figure 75: Costcutter, Estimated product sales and sales densities, 2012
- Consumer profile
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- Figure 76: Costcutter consumer profile, demographics, February 2012
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- Figure 77: Costcutter consumer profile, Region, February 2012
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- Figure 78: Costcutter consumer profile, ACORN group, February 2012
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Musgrave
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- Figure 79: Londis consumer profile by age and affluence, March 2012
- Figure 80: Musgrave: Sales as share of all C-store retailers’ sales in UK, 2007-11
- Strategic evaluation
- Background
- Company performance
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- Figure 81: Musgrave: Group financial performance, 2007-11
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- Figure 82: Musgrave: Outlet data, 2005/06-2009/10
- Store formats
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- Figure 83: Musgrave (Northern Ireland): Stores by format, 2007-10
- Budgens
- Londis
- Space allocation
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- Figure 84: Londis, Budgens, summary space allocation, 2012
- Figure 85: Londis, Budgens, detailed space allocation estimate, 2012
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- Figure 86: Londis, Budgens, estimated product sales and sales densities, 2012
- Consumer profile
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- Figure 87: Londis consumer profile, demographics, February 2012
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- Figure 88: Londis consumer profile, region, February 2012
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- Figure 89: Londis consumer profile, ACORN group, February 2012
- E-commerce
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Nisa
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- Figure 90: Nisa (symbol group): Sales as share of convenience store sales in UK, 2009-11
- Strategic evaluation
- Corporate structure
- Building the brand
- New fascia
- Company performance
- Nisa-Today’s
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- Figure 91: Nisa-Today’s: Group financial performance, 2006/07-2010/11
- Nisa symbol group
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- Figure 92: Nisa (symbol group): Final retail sales of goods supplied by Nisa, 2009/10-2011/12
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- Figure 93: Nisa (symbol group): Outlet data, 2006/07-2010/11
- Retail offering
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Premier
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- Figure 94: Premier: Sales as share of convenience store sales in UK, 2006-11
- Strategic evaluation
- Background
- Company performance
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- Figure 95: Premier: Group financial performance, 2006/07-2010/11
- Figure 96: Premier: Outlet data, 2006/07-2010/11
- Retail offering
- Consumer profile
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- Figure 97: Premier consumer profile, demographics, February 2012
- Figure 98: Premier consumer profile, region, Feb 2012
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- Figure 99: Premier consumer profile, ACORN group, Feb 2012
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Marks & Spencer (food)
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- Figure 100: M&S consumer profile by age and affluence, March 2012
- Strategic evaluation
- Sliding down the rankings
- Treading a fine line between mass market and premium
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- Figure 102: Chateau d’Estoublon olive oil spray
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- Figure 103: M&S (food): High Street, Kensington, store
- Food on the Move
- Background
- Company performance
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- Figure 104: Marks & Spencer (food): Group financial performance, 2006/07-2010/11
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- Figure 105: Marks & Spencer (food): Outlet data, 2006/07-2010/11
- M&S
- Space allocation
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- Figure 106: M&S Simply Food, summary space allocation, 2012
- Figure 107: M&S Simply Food, Detailed space allocation estimate, 2012
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- Figure 108: M&S, Estimated product sales and sales densities, 2012
- Consumer profile
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- Figure 109: M&S Simply Food consumer profile, Demographics, Feb 2012
- Figure 110: M&S Simply Food consumer profile, Region, Feb 2012
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- Figure 111: M&S Simply Food consumer profile, ACORN group, Feb 2012
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Tesco (convenience)
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- Figure 112: Tesco Express: consumer profile by age and affluence, March 2012
- Figure 113: Tesco (convenience): Sales as share of convenience store sales in UK, 2006-11
- Strategic evaluation
- Express – a strong point in a weak year
- Click and collect
- Investment in stores
- Developing One Stop
- Opportunities remain
- Background
- Company performance
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- Figure 114: Tesco (convenience): Estimated proportion of Tesco UK retail sales from convenience stores (Express and One Stop), year to February, 2007-12
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- Figure 115: Tesco (UK): Group financial performance, 2006/07-2011/12
- Figure 116: Tesco (UK): Outlet data, 2006/7-2011/12
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- Figure 117: Tesco (convenience): Average store sizes, 2006/07-2010/11
- Retail offering
- Space allocation
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- Figure 118: Tesco Express, summary space allocation, 2012
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- Figure 119: Tesco Express, detailed space allocation estimate, 2012
- Figure 120: Tesco, Estimated product sales and sales densities, 2012
- Consumer profile
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- Figure 121: Tesco Express consumer profile, Demographics, Feb 2012
- Figure 122: Tesco Express consumer profile, Region, Feb 2012
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- Figure 123: Tesco Express consumer profile, ACORN group, Feb 2012
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Sainsbury’s Local
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- Figure 124: Sainsbury’s Local: consumer profile by age and affluence, March 2012
- Figure 125: J Sainsbury (convenience): Sales as share of convenience store sales in UK, 2006-11
- Strategic evaluation
- Portfolio
- Potential
- Positioning
- Fresh Kitchen
- Background
- Company performance
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- Figure 126: Estimated proportion of J. Sainsbury UK retail sales from convenience stores, years to March, 2007-12
- Figure 127: J Sainsbury (UK): Group financial performance, 2007/08-2011/12
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- Figure 128: J Sainsbury (UK): Outlet data, 2007/08-2011/12
- Figure 129: Sainsbury’s Local: Average store sizes, 2006/07-2010/11
- Space allocation
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- Figure 130: Sainsbury’s Local, Summary space allocation, 2012
- Figure 131: Sainsbury’s Local, detailed space allocation estimate, 2012
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- Figure 132: Sainsbury’s Local, Estimated product sales and sales densities, 2012
- Consumer profile
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- Figure 133: Sainsbury’s Local consumer profile, Demographics, Feb 2012
- Figure 134: Sainsbury’s Local consumer profile, Region, Feb 2012
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- Figure 135: Sainsbury’s Local consumer profile, ACORN group, Feb 2012
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Spar Uk
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- Figure 136: Spar: consumer profile by age and affluence, March 2012
- Figure 137: Spar UK: Sales as share of all C-store retailers’ sales in UK, 2007-2011
- Strategic evaluation
- Growing competition
- But building on strengths
- Background
- Company performance
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- Figure 138: SPAR UK: Group sales performance, 2006-11
- Figure 139: Spar UK: Outlet data, 2006-10
- Store formats
- Retail offering
- Space allocation
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- Figure 140: Spar, Summary space allocation, 2012
- Figure 141: Spar, Detailed space allocation estimate, 2012
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- Figure 142: Spar, estimated product sales and sales densities, 2012
- Consumer profile
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- Figure 143: Spar UK consumer profile, demographics, February 2012
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- Figure 144: Spar UK consumer profile, Region, February 2012
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- Figure 145: Spar UK consumer profile, ACORN group, February 2012
- E-commerce
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Other Symbol Groups
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- Figure 146: Estimated retail sales and store numbers of selected symbol groups, 2011
- Landmark Wholesale: Lifestyle Express
- BestWay Group: Best-One/Best-In/Xtra Local
- Palmer & Harvey: Mace
- Select & Save
- Bargain Booze: Thorougoods/Select
- Simply Fresh
- J. W. Filshill: KeyStore
- Vivo
- Sugro: Nearbuy
- Today’s (retail club)
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Forecourts
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- Sector structure
- Developing the offer
- Grocer-operated forecourts
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- Figure 147: Number of grocer-operated forecourts, and number of shops on these forecourts, 2011
- Grocery fascia on third-party forecourts
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- Figure 148: Grocery multiples’ stores on third-party forecourts, 2011
- Major fuel retailers’ own fascia
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- Figure 149: BP/Esso: Customer profile by age and affluence, March 2012
Appendix – The Consumer – Who Shops Where?
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- Figure 150: Most popular convenience stores purchased at in the last 12 months, by demographics, February 2012
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- Figure 151: Next most popular convenience stores purchased at in the last 12 months, by demographics, February 2012
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- Figure 152: Other convenience stores purchased at in the last 12 months, by demographics, February 2012
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- Figure 153: Convenience stores purchased at in the last 12 months, by repertoire of convenience stores purchased at in the last 12 months, February 2012
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Appendix – The Consumer – Use of Convenience Stores
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- Figure 154: Frequency of purchasing from a convenience store, by demographics, February 2012
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Appendix – The Consumer – Amount Spent in Convenience Stores
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- Figure 155: Amount spent in the last week at a convenience store, by demographics, February 2012
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Appendix – The Consumer – Consumer Attitudes Towards Convenience Stores
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- Figure 156: Most popular consumer attitudes towards convenience stores in the last 12 months, by demographics, February 2012
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- Figure 157: Next most popular consumer attitudes towards convenience stores in the last 12 months, by demographics, February 2012
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- Figure 158: Consumer attitudes towards convenience stores in the last 12 months, by most popular convenience stores purchased at in the last 12 months, February 2012
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- Figure 159: Consumer attitudes towards convenience stores in the last 12 months, by next most popular convenience stores purchased at in the last 12 months, February 2012
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