Table of Contents
Executive Summary
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- The market
- Forecast to 2018
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- Figure 1: Convenience store sector sales and forecast (incl VAT), 2008-18
- Market factors
- Companies, brands and innovation
- Market shares
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- Figure 2: Leading convenience retailers’ market shares, 2012 and 2013
- Innovations and developments
- The consumer
- Types of stores used
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- Figure 3: The consumer: Types of stores used regularly for main shops and top-up shops, February 2014
- Convenience retailers used
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- Figure 4: Convenience stores used regularly, February 2014
- What they buy at convenience stores
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- Figure 5: The consumer: Products purchased most frequently from convenience stores, February 2014
- Food-for-later and food-to-go
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- Figure 6: The consumer: Usage of convenience stores for meals, February 2014
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- Figure 7: The consumer: Attitudes to food-to-go, February 2014
- Location, access, behaviour and attitudes
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- Figure 8: The consumer: Behaviour – Location and access, February 2014
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- Figure 9: The consumer: Attitudes and behaviour, February 2014
- Who is using petrol forecourt shops?
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- Figure 10: The consumer: Usage of petrol-station shops – Where they shop, February 2014
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- Figure 11: The consumer: Usage of petrol-station shops – The experience, February 2014
- What we think
Issues and Insights
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- Which age groups are worth focusing on?
- The facts
- The implications
- What locations should retailers be targeting?
- The facts
- The implications
- Are there opportunities in petrol forecourts?
- The facts
- The implications
- What are the opportunities in food-to-go and food-service?
- The facts
- The implications
- Is convenience a panacea for major grocers?
- The facts
- The implications
Trend Application
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- Make It Mine
- Prove It
- Mintel Futures
Market Environment
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- Key points
- Consumer confidence returns to positive territory
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- Figure 12: UK: Consumer confidence levels, March 2013-February 2014
- Single-person households
- Inflation falls sharply, especially in food
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- Figure 13: UK: Consumer prices index: Annual % change, food and total CPI, January 2013- January 2014
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- Figure 14: UK: Consumer prices index: Annual % change, alcohol, tobacco and total CPI, January 2013-January 2014
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- Figure 15: Consumer prices index: annual % change, food and beverage categories, January 2013-January 2014
- Incomes remain squeezed though the price/wage gap has narrowed
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- Figure 16: Retail prices index and average weekly earnings: Annual % change, June 2010-January 2014
- Impact on convenience
Consumer Spending on Key Categories
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- Key points
- Food, drink and tobacco
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- Figure 17: UK: Breakdown of spending on food, beverages and tobacco, 2013
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- Figure 18: UK: Consumer spending on in-home food, beverages and tobacco (incl VAT), 2009-14
- Non-food FMCGs
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- Figure 19: UK: Consumer spending on personal care, household and over-the-counter pharmaceutical products (incl. VAT), 2009-14
- Total potential market
Sector Size and Forecast
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- Key points
- Sector sales grow nearly 5%, well ahead of supermarkets
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- Figure 20: Convenience store sector sales and forecast (incl VAT), 2008-18
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- Figure 21: Convenience store sector sales and forecast (incl VAT), at current and constant prices, 2008-18
- Convenience accounts for over one-quarter of the grocers sector
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- Figure 22: Convenience store sector sales as a share of total grocers sector sales, 2008-18
- Sector growth: convenience set to remain ahead of all-grocers and supermarkets
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- Figure 23: Annual sector growth rates: Convenience store sales versus all grocers’ sales versus supermarket sales (incl. online), 2012-18
- Factors impacting on growth
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- Figure 24: Convenience stores: Market factors
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- Figure 25: Convenience stores: Market factors
- Mintel’s forecast methodology
- The fan chart
Strengths and Weaknesses
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- Strengths
- Weaknesses
The Consumer – Types of Stores Used
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- Key points
- What we asked
- Why we asked this
- Where they shop for main shops and top-up shops
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- Figure 26: The consumer: Types of stores used regularly for main shops and top-up shops, February 2014
- Demographics: C-store shoppers more affluent
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- Figure 27: The consumer: Types of stores used regularly for top-up shops, average age and affluence, February 2014
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- Figure 28: The consumer: Types of stores used regularly for top-up shops, by age group, February 2014
The Consumer – Convenience Retailers Used
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- Key points
- What we asked
- Grocery multiples dominate by shopper numbers
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- Figure 29: Convenience stores used regularly, February 2014
- Symbol groups pushed outside the top five
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- Figure 30: The consumer: Most popular named convenience-store retailers, February 2011, February 2012, January 2013 and February 2014
- Co-operative sees a typically older shopper
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- Figure 31: Convenience stores used regularly, by average age and affluence, February 2014
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- Figure 32: Convenience stores used regularly, by age group, February 2014
- Tesco and Sainsbury’s shoppers biased towards urban locations
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- Figure 33: Convenience stores used regularly, by urban/rural location, February 2014
The Consumer – What They Buy at Convenience Stores
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- Key points
- What we asked
- What they buy
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- Figure 34: The consumer: Products purchased most frequently from convenience stores, February 2014
- Demographics: older shoppers remain focused on distress purchases
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- Figure 35: The consumer: Products purchased most frequently from convenience stores, average age/affluence, February 2014
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- Figure 36: The consumer: Products purchased most frequently from convenience stores – Most popular, by age group, February 2014
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- Figure 37: The consumer: Products purchased most frequently from convenience stores – Less popular, by age group, February 2014
- What they buy, by retailer used
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- Figure 38: The consumer: Products purchased most frequently from convenience stores – Most popular, by convenience stores used regularly, February 2014
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- Figure 39: The consumer: Products purchased most frequently from convenience stores – Less popular, by convenience stores used regularly, February 2014
- What they buy, by how they get there/where they shop
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- Figure 40: The consumer: Products purchased most frequently from convenience stores – Most popular, by attitudes and behaviour (selected statements), February 2014
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- Figure 41: The consumer: Products purchased most frequently from convenience stores – Less popular, by attitudes and behaviour (selected statements), February 2014
The Consumer – Food-for-later and Food-to-go
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- Key points
- What we asked
- Meal occasions: Snacks and lunch are most important for convenience stores
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- Figure 42: The consumer: Usage of convenience stores for meals, February 2014
- Food-to-go: Strong demand for freshness and value
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- Figure 43: The consumer: Attitudes to food-to-go, February 2014
- Meal occasions: younger shoppers buy meals from c-stores
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- Figure 44: The consumer: Usage of convenience stores for meals, selected statements by age group, February 2014
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- Figure 45: The consumer: Usage of convenience stores for meals, average age and affluence, February 2014
- Meal occasions: near-work shoppers are more likely to be buying
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- Figure 46: The consumer: Usage of convenience stores for meals, selected statements, by where they shop at convenience stores, February 2014
- Meal occasions: Co-operative shoppers under-index
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- Figure 47: Usage of convenience stores for meals, selected statements, by convenience stores used regularly, February 2014
- Food-to-go: older shoppers prefer food-service specialists
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- Figure 48: The consumer: Attitudes to food-to-go, average age and affluence, February 2014
The Consumer – Location, Access, Behaviour and Attitudes
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- Key points
- What we asked
- Location and access: most walk to a store near their home
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- Figure 49: The consumer: Behaviour – Location and access, February 2014
- Behaviour and attitudes: Price-sensitivity is still an issue
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- Figure 50: The consumer: Attitudes and behaviour, February 2014
- Demographics: those opting for major chains are younger and more affluent
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- Figure 51: The consumer: Attitudes and behaviour, by average age and affluence, February 2014
- Yet price sensitivity is much higher among younger shoppers
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- Figure 52: The consumer: Attitudes and behaviour, by age group, February 2014
- Location and access, by retailer used
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- Figure 53: The consumer: Behaviour – Location and access, by convenience store retailer used regularly (selected retailers), February 2014
The Consumer – Who is Using Petrol Forecourt Shops?
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- Key points
- What we asked
- Location: usage driven by proximity
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- Figure 54: The consumer: Usage of petrol-station shops – Where they shop, February 2014
- The experience: impulse buys are important
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- Figure 55: The consumer: Usage of petrol-station shops – The experience, February 2014
- Forecourt findings elsewhere in this report
- All findings – By average age/affluence
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- Figure 56: The consumer: Usage of petrol-station shops – All statements, by age/affluence, February 2014
- Location demographics: rural-dwellers less likely to be shopping at forecourts
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- Figure 57: The consumer: Usage of petrol-station shops – Where they shop, by urban/rural, February 2014
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- Figure 58: The consumer: Usage of petrol-station shops – Where they shop, by selected region, February 2014
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- Figure 59: The consumer: Usage of petrol-station shops – Where they shop, by age group, February 2014
- The experience demographics: demand for food-to-go and drinks-to-go tails off with age
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- Figure 60: The consumer: Usage of petrol-station shops – The experience, by age group, February 2014
Who’s Innovating?
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- Key points
- Location-based customer app
- ‘Food for now’ store concept from The Co-op
- Walmart to Go store concept
- New premium store format focusing on local food
- New value concept tailored to local area
- Daily’s Convenience Stores adds fast casual dining concept
- C-store comes to the workplace
- Automated convenience store
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- Figure 61: Shop24 hybrid vending machine/convenience store concept
- Vending machines filling the void
- App-only deals
- Nisa testing ‘Mini Checkout’ app
- Redefining what it means to be a convenience store
- Subway convenience store
Leading Retailers and Market Shares
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- Key points
- Tesco grows its strong lead over M&S and The Co-operative
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- Figure 62: Leading convenience retailers’ market shares, 2012 and 2013
- Grocery multiples strengthen lead over major symbol groups
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- Figure 63: Total sales of the leading retailers, by type of retailer (excl. VAT), 2012 and 2013
- Leading retailers: Tesco leads, Sainsbury’s has much to catch up
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- Figure 64: Leading convenience retailers’ net revenues, 2009-13
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- Figure 65: Leading convenience retailers’ outlet numbers, 2009-13
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- Figure 66: Leading convenience retailers’ annual sales per outlet, 2009-13
- Market shares
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- Figure 67: Leading convenience retailers’ shares of sector sales, 2009-13
Space Allocation and Sales Mix
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- Key points
- Space allocations
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- Figure 68: Convenience stores: Distribution of sales area by product category, by retailer, March 2014
- Figure 69: Fresh and ambient food space allocation, March 2014
- Detailed space allocations
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- Figure 70: Convenience stores: Detailed space allocation, March 2014
- Figure 71: Convenience stores: Detailed space allocation, March 2014 (continued)
- Retail product mix
- Tobacco and lottery
- Sales mix estimates
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- Figure 72: Leading convenience stores: Summary space data, 2013
- Figure 73: Leading convenience stores: Estimated breakdown of sales by product, 2013
Brand Communication and Promotion
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- Key points
- Advertising spend up in 2013
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- Figure 74: Total media adspend in the UK supermarket/convenience retailing sector, 2009-13
- Tesco leads the pack
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- Figure 75: Main media adspend, by leading supermarket/convenience store operators, 2009-13
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- Figure 76: Share of main media adspend in the UK supermarket/convenience retailing sector, 2013
- Spending relative to turnover
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- Figure 77: Leading convenience store retailers’ advertising spending as % of turnover, 2009-12
- Press remains the most popular advertising channel
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- Figure 78: Adspend in the UK supermarket/convenience retailing sector, by media type, 2012 and 2013
- What we’ve seen in 2014
The Co-operative Food
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- What we think
- Upheavals
- Focusing on convenience
- Reviving the offer
- Company background
- Company performance
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- Figure 79: The Co-operative Food: Group financial performance, 2008/09-2013/14
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- Figure 80: The Co-operative Food: Outlet data, 2008/09-2013/14
- Retail offering
Costcutter Supermarkets Group
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- What we think
- Scale boosted by Palmer & Harvey agreement
- Multi-fascia strategy strengthened by Mace integration
- Relaunched own-brand recognises shifts in convenience
- Company background
- Company performance
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- Figure 81: Costcutter Supermarkets Group: Group financial performance, 2009/10-13
- Figure 82: Costcutter Supermarkets Group: Outlet data, 2009-13
- Retail offering
Marks & Spencer Food
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- What we think
- Food powering ahead
- Well beyond distress purchases
- Simply Food set for 150 new UK stores
- And European expansion
- Background
- Company performance
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- Figure 83: Marks & Spencer, UK like-for-like growth, 2012/13, 2013/14
- Figure 84: Marks & Spencer: Group financial performance, 2009/10 -2013/14
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- Figure 85: Marks & Spencer: Outlet data, 2009/10 -2013/14
- Retail offering
Musgrave (UK)
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- What we think
- Londis needs work
- Own brand responding to changing shopper needs
- Company background
- Company performance
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- Figure 86: Musgrave: Group financial performance, 2009-13
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- Figure 87: Musgrave: Outlet data, 2008-12
- Retail offering
- Budgens
- Londis
Nisa (fascia)
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- What we think
- Company background
- Company performance
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- Figure 88: Nisa: Estimated group financial performance, 2009/10-2013/14
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- Figure 89: Nisa Retail: Outlet data, 2009/10-2013/14
- Retail offering
Premier
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- What we think
- Many stores, relatively few shoppers
- Refreshed formats to drive further growth
- Remains skewed to distress purchases
- Company background
- Company performance
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- Figure 90: Premier: Estimated sales performance, 2009/10-2013/14
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- Figure 91: Premier: Outlet data, 2009/10-2013/14
- Retail offering
J Sainsbury
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- What we think
- A distinct convenience proposition – But trailing Tesco
- Strong value sales, weaker shopper numbers
- Performance slowing
- The threat of a resurgent Tesco
- Company background
- Company performance
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- Figure 92: J Sainsbury: Group financial performance, 2009/10-2013/14
- Outlets
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- Figure 93: J Sainsbury: Outlet data, 2009/10-2012/13
- Retail offering
Spar UK
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- What we think
- The UK’s largest symbol group
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- Figure 94: Spar Walthamstow’s Eat 17 pizzeria, April 2014
- Competition hotting up
- Recognising convenience is changing
- Company background
- Company performance
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- Figure 95: Spar UK Ltd: Group financial performance, 2009/10 -2013/14
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- Figure 96: Spar UK Ltd: Outlet data, 2009/10-2013/14
- Figure 97: Spar UK Ltd: Outlet data breakdown, 2013/14
- Retail offering
Tesco
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- What we think
- A leader in convenience
- Prices – Much less important than they are thought to be
- Investing in the business
- Non-food changes
- Online leader
- The future
- Company background (UK)
- Company performance
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- Figure 98: Tesco UK: Sales growth, 2013/14
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- Figure 99: Tesco Plc: Group financial performance, 2008/09-2013/14
- Outlets
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- Figure 100: Tesco UK: Outlet data, 2009/10-2013/14
- Retail offering
Other Major Convenience Retailers
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- Figure 101: Other major convenience fascia: Estimated retail sales and store numbers, 2012 and 2013
- Lifestyle Express (Landmark Wholesale)
- Best-One (Bestway Group)
- McColl’s (McColl’s Retail Group)
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Petrol Forecourts
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- Key points
- Retail context
- Forecourt numbers in decline
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- Figure 102: Petrol forecourts: Number of forecourts by type of operation, 2013
- Major grocers’ filling stations and forecourt shops
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- Figure 103: Petrol forecourts: Number of forecourts operated by superstores, by retailer, 2013
- Forecourt shops are increasingly important
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- Figure 104: Number of symbol group stores on dealer-owned forecourts, 2013
- Major fuel companies
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- Figure 105: Leading fuel companies’ estimated shop sales and forecourt numbers, 2012 and 2013
- Key consumer findings: food-to-go is key
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- Figure 106: The consumer: Usage of petrol station shops – Where they shop, February 2014
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- Figure 107: The consumer: Usage of petrol-station shops – The experience, selected statements, February 2014
Appendix – The Consumer – Types of Stores Used
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- Figure 108: Types of stores used regularly for main shops and top-up shops, February 2014
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- Figure 109: Most popular types of stores used regularly for main shops and top-up shops – Main weekly/monthly grocery shop, by demographics, February 2014
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- Figure 110: Next most popular types of stores used regularly for main shops and top-up shops – Main weekly/monthly grocery shop, by demographics, February 2014
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- Figure 111: Most popular types of stores used regularly for main shops and top-up shops – Top-up grocery shopping, by demographics, February 2014
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- Figure 112: Next most popular types of stores used regularly for main shops and top-up shops – Top-up grocery shopping, by demographics, February 2014
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Appendix – The Consumer – Convenience Retailers Used
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- Figure 113: Convenience stores used regularly, February 2014
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- Figure 114: Convenience stores used regularly, by types of stores used regularly for main shops and top-up shops – Main weekly/monthly grocery shop, February 2014
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- Figure 115: Convenience stores used regularly, by types of stores used regularly for main shops and top-up shops – Main weekly/monthly grocery shop, February 2014 (continued)
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- Figure 116: Convenience stores used regularly, by types of stores used regularly for main shops and top-up shops – Top-up grocery shopping, February 2014
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- Figure 117: Convenience stores used regularly, by types of stores used regularly for main shops and top-up shops – Top-up grocery shopping, February 2014 (continued)
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- Figure 118: Most popular convenience stores used regularly, by demographics, February 2014
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- Figure 119: Next most popular convenience stores used regularly, by demographics, February 2014
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- Figure 120: Other convenience stores used regularly, by demographics, February 2014
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Appendix – The Consumer – What They Buy at Convenience Stores
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- Figure 121: Products purchased most frequently from convenience stores, February 2014
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- Figure 122: Products purchased most frequently from convenience stores, by most popular convenience stores used regularly, February 2014
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- Figure 123: Products purchased most frequently from convenience stores, by next most popular convenience stores used regularly, February 2014
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- Figure 124: Most popular products purchased most frequently from convenience stores, by demographics, February 2014
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- Figure 125: Next most popular products purchased most frequently from convenience stores, by demographics, February 2014
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- Figure 126: Other products purchased most frequently from convenience stores, by demographics, February 2014
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Appendix – The Consumer – Location, Access, Behaviour and Attitudes
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- Figure 127: Attitudes and behaviour, February 2014
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- Figure 128: Attitudes and behaviour, by most popular convenience stores used regularly, February 2014
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- Figure 129: Attitudes and behaviour, by next most popular convenience stores used regularly, February 2014
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- Figure 130: Products purchased most frequently from convenience stores, by most popular attitudes and behaviour, February 2014
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- Figure 131: Products purchased most frequently from convenience stores, by next most popular attitudes and behaviour, February 2014
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- Figure 132: Most popular attitudes and behaviour, by demographics, February 2014
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- Figure 133: Most popular attitudes and behaviour, by demographics, February 2014 (continued)
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- Figure 134: Next most popular attitudes and behaviour, by demographics, February 2014
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Appendix – The Consumer – Food-for-later and Food-to-go
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- Figure 135: Usage of convenience stores for meals, February 2014
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- Figure 136: Usage of convenience stores for meals, by most popular convenience stores used regularly, February 2014
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- Figure 137: Usage of convenience stores for meals, by next most popular convenience stores used regularly, February 2014
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- Figure 138: Usage of convenience stores for meals, by most popular attitudes and behaviour, February 2014
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- Figure 139: Usage of convenience stores for meals, by next most popular attitudes and behaviour, February 2014
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- Figure 140: Usage of convenience stores for meals, by most popular attitudes to food-to-go, February 2014
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- Figure 141: Usage of convenience stores for meals, by next most popular attitudes to food-to-go, February 2014
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- Figure 142: Usage of convenience stores for meals, by most popular products purchased most frequently from convenience stores, February 2014
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- Figure 143: Usage of convenience stores for meals, by next most popular products purchased most frequently from convenience stores, February 2014
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- Figure 144: Most popular usage of convenience stores for meals, by demographics, February 2014
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- Figure 145: Next most popular usage of convenience stores for meals, by demographics, February 2014
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- Figure 146: Attitudes to food-to-go, February 2014
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- Figure 147: Attitudes to food-to-go, by most popular convenience stores used regularly, February 2014
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- Figure 148: Attitudes to food-to-go, by next most popular convenience stores used regularly, February 2014
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- Figure 149: Attitudes to food-to-go, by most popular usage of convenience stores for meals, February 2014
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- Figure 150: Attitudes to food-to-go, by next most popular usage of convenience stores for meals, February 2014
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- Figure 151: Most popular attitudes to food-to-go, by demographics, February 2014
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- Figure 152: Next most popular attitudes to food-to-go, by demographics, February 2014
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Appendix – The Consumer – Who’s Using Petrol Forecourt Shops?
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- Figure 153: Usage of petrol-station shops, February 2014
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- Figure 154: Usage of petrol-station shops, by most popular convenience stores used regularly, February 2014
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- Figure 155: Usage of petrol-station shops, by next most popular convenience stores used regularly, February 2014
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- Figure 156: Most popular usage of petrol-station shops, by demographics, February 2014
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- Figure 157: Most popular usage of petrol-station shops, by demographics, February 2014 (continued)
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- Figure 158: Next most popular usage of petrol-station shops, by demographics, February 2014
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