Author: Mintel Group Ltd.
Last saved by: HTTP server

Forecourt & Convenience Retailing - Ireland - June 2015
Introduction
 
The Irish grocery retailing industry is highly competitive, and the convenience retailing sector is no different. Convenience retailers have increased investment in developing their in-store proposition to improve their food-to-go and fresh food offering, raising standards across the sector and increasing the range of consumers’ needs that they can cater for, to enable them to compete more effectively. Despite this investment, growth in the market is expected to be slow in 2015, with food price deflation the main issue weighing on the sector’s performance.

This report examines the convenience and forecourt retailing industry in NI and RoI. This includes an analysis of the main market drivers, in addition to an assessment of the size and direction of the market. It also draws on consumer research to examine which convenience store brands Irish consumers are using, how they are using them and in which locations Irish consumers are most likely to use c-stores.

Key themes of the report
●	What implications does the downward pressure on food prices have for c-stores and forecourts? – How are the changing economic trends affecting the convenience and forecourt retailing sector? What can convenience and forecourt retailers do to reduce the impact of falling food prices? 
●	What factors are driving usage of c-stores and forecourts? – Has the growth of one-person households contributed to the usage of c-stores? Is the increased usage of public transport in Ireland reflected in the usage of c-stores at these locations?
●	Which convenience store brands are Irish consumers using regularly? – Which store brands are proving to be more popular among Irish consumers? 
●	How are Irish consumers using c-stores and forecourts? – Are consumers using c-stores and forecourts regularly for grocery shopping or for purchasing items between larger weekly shops? Do Irish consumers use c-stores and forecourts to purchase lunchtime/snack foods?
●	Where are Irish consumers most likely to use c-stores? – Are town centre/high street c-stores popular among Irish consumers? Do petrol station forecourt stores have high usage levels? How often are Irish consumers using c-stores in these locations?

Other Mintel reports of relevance include:

●	Convenience Stores – UK, April 2015
●	Online and Mobile Retailing – Ireland, March 2015
●	Grocery Retailing – Ireland, December 2014
●	Food to Go – Opportunities for the Lunchtime Trade – Ireland, June 2014.

Data sources
In compiling this report, Mintel has gathered data from separate NI and RoI sources (eg NISRA – Northern Ireland Statistics and Research Agency and CSO – Central Statistics Office). In some cases, therefore, it has not been possible to provide comparable data for each region.

For the purpose of this report:

●	Ireland or IoI refers to the island of Ireland.
●	NI refers to Northern Ireland.
●	RoI refers to the Republic of Ireland.
●	Therefore, ‘Irish consumers’ refers to both NI and RoI consumers.

Mintel also draws consumer insight from other sources:

●	Mintel’s trend database and previous Mintel reports in the UK and Ireland.
●	Exclusive consumer research commissioned by Mintel and conducted by Toluna in March 2015.

Please note that the results presented in The Consumer sections of this report relate to the usage and habits of Irish internet users only, and do not account for the behaviours of non-internet users. Eurostat (January 2015) highlights that 80% of RoI consumers have used the internet in the last 12 months, while the ONS (Office for National Statistics) (May 2014) highlights that 79% of NI consumers have used the internet.

Market size rationale 
The Market Size and Forecast section of this report examines only sales occurring at c-stores and forecourts in NI and RoI and excludes sales occurring at supermarkets and hypermarkets/superstores (eg Tesco Extra, SuperValu, Aldi). 

Please note that in the Market Size and Forecast section of this report, data is forecast by projecting how this particular market will progress based on various independent macroeconomic variables. Mintel uses economic data collected on inflation, population, exchange rate and GDP (Gross Domestic Product) to run a multivariate linear regression and trend function. With this function Mintel is able to forecast future market sizes and interpret the results based on the above variables including other independent factors the analyst interprets which could change the future market. (Economic data is collected from NISRA, ONS, CSO and other statistical sources.)

Definition
This report will examine the convenience and forecourt retailing sector in Ireland through exploring the issues that are driving or inhibiting its growth on the island. Covered in this report are the sale of all grocery items (food and non-food) via c-stores and forecourt retailers and the sale of food from deli counters and coffee kiosks. Sales from discounters, supermarkets and hypermarkets/superstores (eg Tesco Extra) are excluded. Market share figures for petrol station forecourts and the sale of motor fuel in NI and RoI are also examined.

A convenience store (also called a c-store or symbol group retailer, eg Mace) tends to be smaller in size compared to a supermarket (typically 3,000 square feet), is traditionally open for longer hours and typically sells staple groceries and snacks, although it also stocks a range of non-food items, such as newspapers, magazines and tobacco. Many petrol stations also supplement their operations with the offer of c-stores (eg Maxol and Spar in NI). Prices in c-stores are typically higher than those in a larger supermarket.

Abbreviations
BP | British Petroleum
BWG | Brooks Watson Group
CIE | Córas Iompair Éireann
CPI | Consumer Price Index
CSO | Central Statistics Office
FFI | Food Force Ireland
GDP | Gross Domestic Product
GNPD | Global New Product Database
IFCR | Ireland’s Forecourt and Convenience Retailer Magazine
IoI | Island of Ireland
IPO | Initial Public Offering
NI | Northern Ireland
NISRA | Northern Ireland Statistics and Research Agency
NPD | New Product Development
ONS | Office for National Statistics
QR | Quick Response Codes
RoI | Republic of Ireland
SIMI | Society of the Irish Motor Industry
SMMT | Society of Motor Manufacturers and Traders

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.