Convenience to ‘return to growth’

basket of food

The UK convenience market is forecast to reach a value of £45.2bn in 2022, up 3.2% on 2021, new research from Lumina reveals.

This follows a small decline in 2021 of 0.8%, as market growth slowed as a result of hospitality reopening and coronavirus restrictions easing.

The Lumina Intelligence UK Convenience Market Report 2022 shows the market is also expected to see positive, albeit modest, outlet growth at 0.6%, with a post-pandemic property boom creating greater prospects for operators to expand.

Co-operatives and convenience multiples are expected to grow turnover by 5.6% and 3.8% in 2022, respectively. This growth will be underpinned by investment in store refits and physical expansion, as well as developments in delivery services.

Forecourts (+1.6%), symbol groups (+2.9%) and unaffiliated independents (+1.7%) are all also expected to see growth, but at a slower rate to the total convenience market.

The data shows that the percentage of UK adults that have had a convenience occasion stabilised at 64% in May 2022, with basket spend and basket size down 10.5% to £7.18 and 15.6% to 2.7 items year-on-year, respectively.