Table of Contents
Introduction
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- Consumer questions
- Sector definition
- Financial definitions
- VAT
- Sales per store, sales per sq m
- Other
- Trade definitions
- Space allocation methodology
- Abbreviations
Executive Summary
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- The market
- Forecast until 2019
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- Figure 1: Convenience store sector sales and forecast (incl. VAT), 2009-19
- Deflation holding back growth
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- Figure 2: Annual change in prices in food and non-alcoholic beverages and alcoholic beverages and tobacco, by month, 2014-15
- Companies, brands and innovation
- Market shares
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- Figure 3: Leading convenience retailers’ market shares, 2013 and 2014
- Figure 4: Total sales of the leading retailers, by type of retailer (excl. VAT), 2013 and 2014
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- Figure 5: Store numbers of the leading retailers, by type of retailer, 2013 and 2014
- Innovations and developments
- The consumer
- Types of stores used
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- Figure 6: Types of stores used regularly for main and top-up shops, February 2015
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- Figure 7: The consumer, age demographics of convenience store use, by type of shop regularly completed, February 2015
- Retailers used
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- Figure 8: Convenience stores used regularly, February 2015
- Frequency of convenience store use
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- Figure 9: Frequency of convenience store used by regular convenience store shoppers, February 2015
- Location of convenience store use
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- Figure 10: Location of convenience stores regularly used, February 2015
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- Figure 11: Type of convenience store regularly used, by location, February 2015
- Types of shopping completed in convenience stores
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- Figure 12: Types of shopping regularly completed in convenience stores, February 2015
- Attitudes to convenience stores
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- Figure 13: Agreement to statements surrounding convenience store use, February 2015
- What we think
Issues and Insights
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- Which locations are convenience stores most used in?
- The facts
- The implications
- What demographics are worth focusing on and who are the most frequent shoppers?
- The facts
- The implications
- Use of convenience stores for top-up and main shopping
- The facts
- The implications
- The impact of online and the discounters on c-stores
- The facts
- The implications
- Replacing footfall lost from the declining markets of traditional footfall drivers
- The facts
- The implications
Trend Application
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- Hungry Planet
- Life Hacking
- Mintel Futures
Market Environment
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- Key points
- Consumer confidence falls during 2014
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- Figure 14: Financial confidence index, 2009-15
- Rising single person households
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- Figure 15: Projected growth of number of single-person households in the UK, 2009-19
- Food prices deflate in 2014
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- Figure 16: Consumer prices index: Annual % change, food, non-alcoholic beverages and total CPI, May 2014-January 2015
- Figure 17: Consumer prices index: Annual % change, alcohol, tobacco and total CPI, May 2014-January 2015
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- Figure 18: Consumer prices index: Annual % change, food and beverage categories, January 2014-January 2015
- Closing gap between prices and wages
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- Figure 19: Retail prices index and average weekly earnings: Annual % change, Jan 2011-January 2015
- Impact on convenience
Sector Size and Forecast
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- Key points
- Growth slows in 2014 but continues to outpace the overall market
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- Figure 20: Convenience store sector sales and forecast (incl. VAT), 2009-19
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- Figure 21: Convenience store sector sales and forecast (incl. VAT), at current and constant prices, 2009-19
- Deflationary food prices seen for much of 2014
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- Figure 22: Food, alcoholic beverages and tobacco prices, annual rate of change, 2004-14
- Figure 23: Annual change in prices in food and non-alcoholic beverages and alcoholic beverages and tobacco, by month, 2014-15
- Growth in the convenience store market underpinned by growth in the online market
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- Figure 24: Share of all grocery retailers sales by sector, 2009-19
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- Figure 25: Annual sector growth rates, 2010-19
- Mintel’s forecast methodology
Strengths and Weaknesses
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- Strengths
- Weaknesses
The Consumer – Types of Stores Used for Main and Top-up Shops
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- Key points
- What we asked
- Why we asked this
- Where they shop
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- Figure 26: Types of store used for any grocery shopping, February 2015
- Where they shop for main and top-up shops
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- Figure 27: Types of stores used regularly for main and top-up shops, February 2015
- Trend data: Convenience stores claiming more main shops
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- Figure 28: Types of stores used regularly for main shops, February 2014 and February 2015
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- Figure 29: Types of stores used for top-up shops, February 2014 and February 2015
- Demographics of convenience store use
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- Figure 30: The consumer, age demographics of convenience store use, by type of shop regularly completed, February 2015
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- Figure 31: The consumer, location demographics of convenience store use, by type of shop regularly completed, February 2015
- Demographics of top-up shoppers
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- Figure 32: Types of stores used regularly for top-up shops, by average age and affluence, February 2015
The Consumer – Convenience Retailers Used
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- Key points
- What we asked
- Where they shop
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- Figure 33: Convenience stores used regularly, February 2015
- Trend data: Symbol groups make up some ground
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- Figure 34: Convenience stores used regularly, February 2014 and February 2015
- Repertoire analysis: Most consumers just visit one or two stores
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- Figure 35: Convenience store repertoire use of those who regularly use a convenience store, by gender, age, type of area lived in and socio-economic group, February 2015
- Average age and affluence demographics of convenience store shoppers
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- Figure 36: Convenience stores used regularly, by age and affluence, February 2015
- Age demographics of store used
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- Figure 37: Convenience stores used regularly, by age group, February 2015
- Location demographics of store used
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- Figure 38: Convenience stores used regularly by location, February 2015
- Stores used for main and top-up shops
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- Figure 39: Convenience stores used regularly, by shopping purpose, February 2015
The Consumer – Frequency of Convenience Store Use
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- Key points
- What we asked
- Frequency of use
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- Figure 40: Frequency of convenience store use by regular convenience store shoppers, February 2015
- Frequency by type of shop
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- Figure 41: Frequency of convenience store use by regular convenience store shoppers, by shopping type, February 2015
- Frequency by retailer
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- Figure 42: Frequency of convenience store use, by retailer regularly used, February 2015
- Frequency of use by age
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- Figure 43: Frequency of convenience store use, by age, February 2015
- Frequency of use by location
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- Figure 44: Frequency of convenience store use by location lived in, February 2015
- Home ownership usage demographics
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- Figure 45: Frequency of convenience store use, by housing situation, February 2015
The Consumer – Locations of Convenience Store Use
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- Key points
- What we asked
- Convenience stores most popular near the home
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- Figure 46: The consumer: Location of convenience stores regularly used, February 2015
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- Figure 47: Location of convenience stores regularly used, by shopping purpose, February 2015
- Bubble chart – Where convenience stores are used
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- Figure 48: Location in which Convenience stores are used regularly, by age and affluence, February 2015
- Retailers visited by location
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- Figure 49: Location of convenience stores regularly used, by retailer regularly visited, February 2015
- Type of convenience stores used
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- Figure 50: Type of convenience store regularly used, February 2015
- Age penetration of type of stores used
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- Figure 51: Types of convenience stores regularly used, by age, February 2015
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- Figure 52: Types of convenience stores regularly used, by type of location, February 2015
- Type of convenience stores used by location
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- Figure 53: Type of convenience store regularly, by location, February 2015
The Consumer – Types of Shopping Completed in Convenience Stores
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- Key points
- What we asked
- Convenience stores used to top-up on essential items
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- Figure 54: Types of shopping regularly completed in convenience stores, February 2015
- Type of shop by retailers used
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- Figure 55: Types of shopping regularly completed in convenience stores, by retailer regularly used, February 2015.
- Younger shoppers use convenience stores for more regular shopping
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- Figure 56: Types of shopping regularly completed in convenience stores, by age, February 2015
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- Figure 57: Types of shopping regularly completed in convenience stores, by location, February 2015
- Younger consumers head to convenience stores for lunch
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- Figure 58: Lunchtime or snack purchasing in convenience stores, by age, February 2015
- Purchasing of specialised items by generation
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- Figure 59: Types of shopping regularly completed in convenience stores, by generations, February 2015
The Consumer – Attitudes to Convenience Stores
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- Key points
- What we asked
- Top-up shopping comes out on top
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- Figure 60: Agreement to statements surrounding convenience store use, February 2015
- Convenience stores seen as a good alternative to supermarkets
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- Figure 61: Attitudes to the statement ‘I find convenience stores from major chains are a good alternative to large supermarkets’, February 2015
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- Figure 62: Attitudes to the statement ‘I find convenience stores from major chains (eg Tesco Express, Sainsbury's Local) are a good alternative to large supermarkets’, by convenience store regularly used, February 2015
- Convenience gaining some supermarket business
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- Figure 63: Attitudes to the statement ‘I have switched some of my shopping from a supermarket to a convenience store in the last couple of years’, February 2015
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- Figure 64: Agreement to the statement ‘I have switched some of my shopping from a supermarket to a convenience store in the last couple of years’, by type of location lived in, February 2015
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- Figure 65: Attitudes to the statement ‘I have switched some of my shopping from a supermarket to a convenience store in the last couple of years’, by convenience store regularly used, February 2015
- Using convenience stores for top-up purchases after using online
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- Figure 66: Attitudes to the statement ‘I use convenience stores as a complement to buying groceries online’, February 2015
- Discount shoppers using convenience stores for a top-up
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- Figure 67: Attitudes to the statement ‘I use convenience stores as a complement to shopping at Aldi/Lidl’, February 2015
- Some convenience stores are worth the effort
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- Figure 68: Attitudes to the statement ‘I have a preferred convenience store retailer that I will make an effort to visit’, February 2015
- Cutting down on food waste and saving money
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- Figure 69: Attitudes to the statement ‘I shop at convenience stores to cut down on food waste’, February 2015
- Fuel a concern for some consumers
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- Figure 70: Attitudes to the statement ‘I shop at convenience stores to cut down on car usage’, February 2015
- Click-and-collect an added extra
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- Figure 71: Attitudes to the statement ‘I have used a convenience store as a collection point for non-grocery products’, February 2015
Who’s Innovating
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- Key points
- Budgens’ new concept
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- Figure 72: Budgens’ Byfleet store
- Partnering with local wine merchant
- Burger bar come convenience store
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- Figure 73: Eat 17, Spar store, Walthamstow, London, 2015
- Supermarket in a box
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- Figure 74: Coop Italy ‘supermarket in a box’
- Fresh food to go
- Health range
- Nisa Store of the Future 2
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- Figure 75: Nisa Store of the Future 2 concept
- Using technology to gather feedback
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- Figure 76: Customer feedback kiosks in Little Waitrose
- Energy saving store
- Customer loyalty programme
Leading Retailers and Market Shares
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- Key points
- Leaders Tesco and Co-op hold their market share
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- Figure 77: Leading convenience retailers’ market shares, 2013 and 2014
- Grocery multiples continue to extended their market share…
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- Figure 78: Total sales of the leading retailers, by type of retailer (excl. VAT), 2013 and 2014
- …despite trailing in terms of store numbers
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- Figure 79: Store numbers of the leading grocery multiples and symbol groups, 2010-14
- Leading retailers: Tesco has a commanding lead
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- Figure 80: Leading convenience retailers’ net revenues (excl. vat), 2010-14
- Major grocery multiples continue to expand
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- Figure 81: Leading convenience retailers’ outlet numbers, 2010-14
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- Figure 82: Leading convenience retailers’ annual sales per outlet, 2010-14
- Market shares
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- Figure 83: Leading convenience retailers’ shares of sector sales, 2012-14
Space Allocation and Sales Mix
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- Key points
- Space allocation overview
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- Figure 84: Convenience stores: Distribution of sales area by product category, by retailer, March 2015
- Detailed space allocation
- Fresh food battleground
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- Figure 85: The Co-op, Harrow Road, London, March 2015
- Freshness worries to blame for lack of fresh produce at the independent corner shop?
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- Figure 86: Fresh and other food in-store mix, March 2015
- Tailored product mix gives stores a USP
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- Figure 87: Convenience stores: Detailed space allocation, March 2015
- Figure 88: Convenience stores: Detailed space allocation, March 2015 (continued)
- Retail product mix
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- Figure 89: Leading convenience retailers, summary performance data, 2013/14
- Figure 90: Leading C-store retailers, estimated share of sales by product, 2013/14
- Figure 91: Leading C-store retailers, estimated sales by product, 2013/14
Brand Research
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- What you need to know
- Brand map
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- Figure 92: Attitudes towards and usage of selected brands, March 2015
- Key brand metrics
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- Figure 93: Key metrics for selected brands, March 2015
- Brand attitudes: M&S Simply Food enjoys premium positioning
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- Figure 94: Attitudes, by brand, March 2015
- Brand personality: Spar lacks some spark
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- Figure 95: Brand personality – macro image, March 2015
- Sainsbury’s Local noted for customer service, Tesco Express may face some cynical consumers
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- Figure 96: Brand personality – micro image, March 2015
- Brand analysis
- M&S Simply Food’s premium offering promotes strong brand image
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- Figure 97: User profile of M&S Simply Food, March 2015
- Sainsbury’s Local has strong customer service element but lacks the same presence as Tesco Express
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- Figure 98: User profile of Sainsbury’s Local, March 2015
- Tesco Express has high usage from its large network of stores, especially in urban areas
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- Figure 99: User profile of Tesco Express, March 2015
- The Co-operative’s strength is its rural presence and convenience
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- Figure 100: User profile of The Co-operative, March 2015
- Spar likely to be used for essentials but may be seen as too basic for bigger shops
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- Figure 101: User profile of Spar, March 2015
Brand Communication and Promotion
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- Key points
- Leading supermarket and c-store advertisers
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- Figure 102: Main media ad spend, by leading supermarket and convenience store operators, 2010-14
- 42.2% of advertising spend channelled through TV
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- Figure 103: Main media ad spend by leading supermarket and convenience store operators, by media type, 2014
The Co-operative Food
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- What we think
- ‘Fair & Square’ pricing pledge
- Pubs sites and c-store acquisitions boosting expansion
- Scraps online grocery service
- Refurbishing hundreds of c-stores
- Company background
- Company performance
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- Figure 104: The Co-operative Food: Group financial performance, 2010/11-2014/15
- Figure 105: The Co-operative Food: Outlet data, 2010/11-2014/15
- Retail offering
Costcutter Supermarkets Group
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- What we think
- New brand strategy
- New buy and supply arrangement teething problems
- Simply Fresh investment
- Rationalising non-core brands
- Click-and-collect technology in place
- Company background
- Company performance
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- Figure 106: Costcutter Supermarkets Group: Group financial performance, 2010/11-2013/14
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- Figure 107: Costcutter Supermarkets Group: Outlet data, 2010/11-2013/14
- Retail offering
Marks & Spencer (UK Food)
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- What we think
- Disappointing like-for-like performance
- Specialist range
- Simply Food ups expansion plans
- Company background
- Company performance
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- Figure 108: Marks & Spencer, UK like-for-like growth, 2012/13, 2013/14
- Figure 109: Marks & Spencer: Group financial performance, 2010/11 -2014/15
- Figure 110: Marks & Spencer (UK): Outlet data, 2010/11-2014/15
- Retail offering
Premier
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- What we think
- Targeting core customers
- Booker BHS supply deal
- New tailored format to suit local demographic characteristics
- Company background
- Company performance
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- Figure 111: Premier: Estimated sales performance, 2010/11-2014/15
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- Figure 112: Premier: Outlet data, 2010/11-2014/15
- Retail offering
J. Sainsbury
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- What we think
- Netto venture
- Combined convenience store and pharmacy
- Company background
- Company performance
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- Figure 113: J. Sainsbury: Group financial performance, 2010/11-2014/15
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- Figure 114: J. Sainsbury: Outlet data, 2010/11-2014/15
- Retail offering
Spar UK Ltd
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- What we think
- Services to fulfil a variety of shopper missions
- Franchise partners and local suppliers
- New foodservice counter concept
- Forecourt expansion
- Own brand drive success
- Increased online activity to engage with consumers
- Company background
- Company performance
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- Figure 115: Spar UK Ltd: Group financial performance, 2010/11-2014/15
- Figure 116: Spar UK Ltd: Outlet data, 2010/11-2014/15
- Retail offering
Tesco
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- What we think
- Profits overstatement
- Lewis’s turn-around
- Cutting back ranges to simplify shopping
- The future
- Company background (UK)
- Company performance
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- Figure 117: Tesco UK: Sales growth, 2014/15
- Figure 118: Tesco Plc: Group financial performance, 2009/10-2014/15
- Performance by store format and channel
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- Figure 119: Like-for-like sales growth by format and channel, Q1 – Christmas 2014/15
- Outlets
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- Figure 120: Tesco UK: Outlet data, 2009/10-2013/14
- Retail offering
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- Figure 121: Tesco sales breakdown, 2013/14
Other Major Convenience Retailers
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- Figure 122: Other major convenience fascia: Estimated retail sales and store numbers, 2013-14
- Nisa
- 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
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- Figure 123: Number of petrol forecourts by type of operation, 2014
- Leading grocers open new forecourts
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- Figure 124: Number of petrol forecourts operated by superstores, by retailer, 2014
- Major fuel companies
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- Figure 125: Leading fuel companies’ estimated shop sales and forecourt numbers, 2013-14
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