Table of Contents
Executive Summary
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- The market
- Real incomes grow and confidence holds up despite uncertainty
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- Figure 1: Average weekly earnings (excluding bonus pay) growth versus CPIH, January 2016-April 2019
- Growth in the convenience sector accelerates for the third year running
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- Figure 2: Convenience store market size, including VAT, 2013-23
- C-stores account for a quarter of the sector
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- Figure 3: Estimated breakdown of all grocery sales, by format/channel, 2013-18
- Companies and brands
- Tesco leads the way
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- Figure 4: Leading c-stores, market shares, 2018
- M&S has the most differentiated brand
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- Figure 5: Attitudes towards and usage of selected brands, April 2019
- The consumer
- Nine in 10 do some shopping in c-stores
- Traditional categories still a key footfall driver
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- Figure 6: Use of convenience stores, by broad category and detailed non-food and drink purchasing, March 2019
- Food-for-home being driven by younger consumers
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- Figure 7: Types of food-for-home products typically purchased in convenience stores, March 2019
- Lunch key in food-to-go
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- Figure 8: Types of food-to-go typically purchased from convenience stores, March 2018
- Three quarters visit once a week
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- Figure 9: Frequency of convenience store use, March 2018
- Most shop at c-stores in urban areas, although travel locations receive the greatest footfall
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- Figure 10: Area of convenience store use, March 2018
- Tesco Express and Co-op most popular c-stores
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- Figure 11: Convenience retailers regularly used and most often, March 2019
- The sector is strong on convenience and locality, but value for money an issue…
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- Figure 12: Correspondence Analysis, March 2019
- …but other benefits offset the added cost
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- Figure 13: Attitudes towards shopping in convenience stores, March 2018
- What we think
Issues and Insights
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- Leveraging the ethical angle for c-stores
- The facts
- The implications
- Automated convenience
- The facts
- The implications
The Market – What You Need to Know
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- Real incomes grow and confidence holds up despite uncertainty
- Private renting climbs as urbanisation grows
- Growth in the convenience sector accelerates for the third year running
- C-stores account for a quarter of the sector
Market Drivers
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- Real incomes continue to grow…
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- Figure 14: Average weekly earnings (excluding bonus pay) growth versus CPIH, January 2016- April 2019
- …confidence holding up relatively well given the circumstances
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- Figure 15: Mintel’s Financial Confidence Tracker, January 2017-March 2019
- Retail sales are holding up well
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- Figure 16: Retail sales: growth in all retail sales and all food retail sales, by value and volume, January 2017-February 2019
- Food inflation eases in 2018
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- Figure 17: Inflation in core food and drink categories, 2014-February 2019
- Private renting continues to climb
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- Figure 18: UK households, by tenure status, 2012-17
- UK population is ageing
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- Figure 19: UK population, by age, 2013-23
- Two thirds of households contain one or two people
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- Figure 20: UK household size as a percentage of all households, 2013-17
Market Size and Forecast
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- C-store sector returns to stronger growth in 2018
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- Figure 21: Convenience store market size, including VAT, 2013-23
- Trends still in favour for convenience stores, but competition is fierce
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- Figure 22: Total convenience store market size (including VAT), at current and constant (2018) prices, 2013-23
- Convenience stores account for a quarter of the grocery sector
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- Figure 23: Estimated breakdown of all grocery sales, by format/channel, 2013-18
- Forecast methodology
The Consumer – What You Need to Know
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- Nine in 10 do some shopping in c-stores
- Traditional categories still a key footfall driver
- Food-for-home being driven by younger consumers
- Three quarters visit once a week
- Most shop at c-stores in urban areas, although travel locations receive the greatest footfall
- Tesco Express and Co-op most popular c-stores
- The sector is strong on convenience and locality, but value for money an issue…
- …but other benefits offset the added cost
Who Shops in Convenience Stores
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- Nearly nine in 10 do some form of shopping via convenience stores
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- Figure 24: Use of convenience stores, by broad category, March 2019
- Usage high across all age groups, but peaks among those aged 16-24
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- Figure 25: Any use of convenience stores, by age, March 2019
- Price reality/perception putting some off
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- Figure 26: Any use of convenience stores, by household income, March 2019
- C-store use peaks in urban areas
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- Figure 27: Any use of convenience stores, by region and type of locations lived in, March 2019
What They Use Convenience Stores For
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- Traditional categories still a key footfall driver
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- Figure 28: Use of convenience stores, by broad category and detailed non-food and drink purchasing, March 2019
- Drinks and household items a driver for younger consumers
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- Figure 29: Use of convenience stores, by detailed non-food and drink purchasing, by age, March 2019
- Higher-income households more likely to buy alcohol
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- Figure 30: Use of convenience stores, by detailed non-food and drink purchasing, by household income, March 2019
Food-for-Home, Food-to-Go Purchasing
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- Younger consumers particularly crucial for food-to-go
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- Figure 31: Food-for-home, food-to-go purchasing at convenience stores, by age, March 2019
- Food-for-home staples still key
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- Figure 32: Types of food-for-home products typically purchased in convenience stores, March 2019
- Particular spike in frozen purchasing among younger shoppers
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- Figure 33: Types of food-for-home products typically purchased in convenience stores, by age, March 2019
- Snacking and lunch crucial in food-to-go
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- Figure 34: Types of food-to-go typically purchased from convenience stores, March 2019
Frequency of Convenience Store Use
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- Three quarters of c-store shoppers visit once a week
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- Figure 35: Frequency of convenience store use, March 2018
- Younger consumers visit most frequently
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- Figure 36: Frequency of convenience store use, by age, March 2019
- Traditional categories still drive the most frequent footfall
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- Figure 37: Frequency of convenience store use, by broad use, March 2019
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- Figure 38: Frequency of convenience store use, by detailed non-food use, March 2019
Locations of Convenience Store Use
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- Urban c-stores most popular types of location
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- Figure 39: Area of convenience store use, March 2019
- Stores in travel hubs see greater daily visitation
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- Figure 40: Area of convenience store use, by frequency of c-store shop, March 2019
Retailers Used
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- Tesco Express and the Co-op show similar style usage
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- Figure 41: Convenience retailers regularly used and most often, March 2019
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- Figure 42: Repertoire of convenience stores regularly used, March 2019
- M&S Simply Food falls behind in usage from 16-24s
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- Figure 43: Leading convenience retailers regularly used, by age, March 2019
- Food items for home are the top purchase
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- Figure 44: Types of products purchased in the leading convenience store retailers, March 2019
Perceptions of Convenience Stores
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- Figure 45: Where c-store users also shop for groceries, March 2019
- Convenience strong, but value for money still a concern at c-stores
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- Figure 46: Correspondence Analysis, March 2019
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- Figure 47: Convenience Stores, March 2019
- Co-op and Spar shoppers most likely to associate c-stores with supporting the local area
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- Figure 48: Perceptions of grocery store format, by c-store shopped with, March 2019
- Methodology
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Attitudes towards Shopping in Convenience Stores
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- Over half are put off c-stores when incomes are squeezed
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- Figure 49: Attitudes towards pricing and convenience stores, March 2019
- Savvier ways of paying would be most appealing to 16-34s
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- Figure 50: Attitudes towards payment options within convenience stores, by age, March 2019
- Recycling initiative would resonate with majority of consumers…
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- Figure 51: Attitudes towards sustainability and convenience stores, March 2019
- …whilst 16-34s associate usage with cutting back on food waste
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- Figure 52: Attitudes towards sustainability and convenience stores, by age, March 2019
Leading Retailers – What You Need to Know
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- Tesco the market leader
- Co-op consolidates its position
- M&S has the most differentiated brand
- Smartphone-driven c-store shopping takes off
Competitive Strategies
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- Multiples
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- Figure 53: Leading multiples, key metrics, 2018
- Co-operatives
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- Figure 54: Co-operatives in the UK, stores and sales, 2018
- Symbol groups
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- Figure 55: Leading convenience store retailers, total store numbers by type of operation, 2015-18
- Petrol forecourts
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- Figure 56: Total number of, and breakdown in ownership of, UK forecourts, 2016-18
Leading Retailers – Key Metrics
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- Two types of c-store operation
- Acquisitions and concentration
- Complicated structure
- Multiples vs symbol groups
- Sales
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- Figure 57: Leading c-stores sales, 2014/15-2018/19
- Stores
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- Figure 58: Leading c-stores outlet numbers, 2014/15-2018/19
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- Figure 59: Leading c-stores, sales per outlet, 2014/15-2018/19
Market Share
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- Two players account for half the market
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- Figure 60: Leading c-stores, market shares (ex-VAT), 2018
- Figure 61: Estimated c-store market shares (ex-VAT), 2014-18
Space Allocation Summary
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- Food is the biggest occupier of in-store shelf space
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- Figure 62: Convenience stores: space allocation estimates, April 2019
- Fresh food and other food split
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- Figure 63: Convenience stores: fresh food and other food mix, by percentage share of total in-store space allocated to food, April 2019
- Detailed space allocation estimates
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- Figure 64: Convenience stores: detailed space allocation estimates, April 2019
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- Figure 65: Convenience stores: detailed space allocation estimates, April 2019
Retail Product Mix
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- Figure 66: Leading Convenience stores, estimated proportion of sales by broad product category, 2018
- Figure 67: Leading convenience stores, estimated sales by broad product category, 2018
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Brand Research
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- What you need to know
- Brand map
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- Figure 68: Attitudes towards and usage of selected brands, April 2019
- Key brand metrics
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- Figure 69: Key metrics for selected brands, April 2019
- Brand attitudes: Co-op maintains image as a trusted brand
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- Figure 70: Attitudes, by brand, April 2019
- Brand personality: Sainsbury’s Local improves its accessibility
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- Figure 71: Brand personality – macro image, April 2019
- Spar is basic, whilst M&S is aspirational and stylish
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- Figure 72: Brand personality – micro image, April 2019
- Brand analysis
- M&S Simply Food is a distinctive brand with high satisfaction
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- Figure 73: User profile of M&S Simply Food, April 2019
- Tesco Express has a broad demographic base
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- Figure 74: User profile of Tesco Express, April 2019
- Sainsbury’s Local usage lags behind rivals
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- Figure 75: User profile of Sainsbury’s Local, April 2019
- The Co-operative’s defining trait is its ethical credentials
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- Figure 76: User profile of The Co-operative, April 2019
- Spar is lacking in differentiation
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- Figure 77: User profile of Spar, April 2019
Launch Activity and Innovation
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- Cashierless shopping: the innovation of the moment
- Expansion of Amazon Go
- Is the future of convenience retail automated?
- Innovating for greater convenience
- 7-Eleven unveils ‘lab’ store
- Pizza convenience
- Robo Shopkeep
- Click-and-collect butchers
Advertising and Marketing Activity
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- Supermarket and c-store advertising spend falls by 8% in 2018
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- Figure 78: Recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarket and convenience store operators, 2014-18
- Convenience store campaigns
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- Figure 79: Leading UK supermarket and convenience store operators: recorded above-the-line, online display and direct mail total advertising expenditure, 2014-18
- TV attracts just under half of all advertising expenditure
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- Figure 80: Recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarket and convenience store operators, by media type, 2018
- Nielsen Ad Intel coverage
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Financial definitions
- Trade definitions
- Sales per store, sales per square metre
- Exchange rates
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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