The number of stores in the convenience sector has grown marginally over the last 12 months, increasing by 0.4%, according to the latest data from IGD Retail Analysis and William Reed Business Media.
|Number of stores 2016||Number of stores 2017||Per cent share of stores 2017||Per cent change in store numbers 2016 – 04/2017|
|Total convenience excluding JVs||46,789||46,980||0.4|
Source: IGD Retail Analysis and William Reed Business Media, data for year ending 31.03.17
Key findings from the figures include:
- In recent years, the co-operative and multiple operators were the primary engines of growth in the UK convenience market, but 2016-17 presents more of a mixed picture. Overall the co-operatives saw small but limited growth. Although the multiple segment remained the largest driver of growth over the last 12 months, it still saw a slowdown from the previous year
- This latest year has seen the number of stores in the symbol segment back in growth after a step back in 2015-16. Growth in the symbols has led to a decline in the unaffiliated independent segment, with these stores typically providing a key recruiting ground for the symbols, as retailers seek to develop their offer in an increasingly competitive market. However, the segment remains the biggest in terms of store numbers
- Once again, the forecourt segment returned to modest decline. The structure of the segment continues to change in terms of ownership, with the key national dealership networks still pursuing expansion and acquiring more stores. For the first time in several years, the number of sites operated by the oil companies remained more stable
Joanne Denney-Finch, Chief Executive, IGD, said: “The increase in convenience store numbers might be small, but it’s nevertheless a sign of the enduring appeal of small stores. However, with other formats such as online and discounters growing in popularity, convenience stores will have to work ever harder to gain growth in the future. However, we believe there are some really clear opportunities for this part of the market.
“First, convenience store operators have a huge chance to engage the younger generation. One in five (19%) 18-25-year-olds mainly shops in convenience stores, which is more than double the number of those aged 26 and over (7%). There’s also a huge opportunity for food-to-go, with more than eight in 10 (83%) of c-store shoppers saying they could be encouraged to buy more food-to-go at their main convenience store.
“Convenience stores need to offer shoppers convenient and effortless ways to get the products, meals and food-to-go options they want, in the shortest time possible. Those operators who get this combination right have a unique opportunity to build on changing shopper habits.”