Texaco self serve till  EDGEPoS

 

Nearly 20% of products purchased within convenience stores are picked up from areas that face HFSS restrictions, according to the Lumina Intelligence UK Convenience Market Report 2021. 

With legislation set to impact stores over 2,000sq ft or with more than 50 staff, and restrictions on promotions and product placement of HFSS products, Lumina Intelligence says preparation is critical. It advises that retailers work closely with brands to create a solution that suits everyone and mitigates the risks posed by HFSS.

The report also reveals that younger shoppers are more likely to pick up purchases in HFSS restricted areas - notably 18-24s are +50% more likely to pick up purchases at the front of store and 25-34s are +45% more likely to pick up a purchase from a till display.

Other highlights included the fact that in total, 54.5% of convenience store shoppers purchase on impulse. Of the top 10 categories that shoppers purchase on impulse within convenience, seven of them are likely to be impacted by the new HFSS regulations:

Category% who bought this category on impulse

Bakery

11%

Bakery (wrapped)

10%

Crisps & Snacks

8%

Soft Drinks

8%

Confectionery

6%

Carbonated soft drinks

5%

 

The top two reasons for purchasing on impulse are: ’I saw it and I was tempted (33%)’; and ’It was on promotion/special offer (17%)’. With restrictions set to be placed on promoting these products and displaying them in locations known for high visibility, there is a risk to the sales of these categories for stores that are impacted by the legislation.

Other date revealed that 44% of convenience store shoppers purchase on promotion, with the four categories most commonly purchased on promotions set to be impacted by the HFSS regulation:

Category% who bought on promotion

Bakery

7.3%

Crisps & Snacks

7.2%

Soft Drinks

6.2%

Confectionery

4.8%

 

Sophie Lane, key account lead at Lumina Intelligence, commented on the results: “For brands impacted by HFSS, strategies around shopper marketing will become even more crucial. How can you drive attention to your product within the main fixtures? For brands not impacted, how can you take advantage of any additional product placement opportunities? For retailers, how can they work with brands and open up alternative activation opportunities?”

”Alternative strategies such as introducing PMP lines, expanding meal deal and cross-merchandising options outside of the usual three-item lunch deal will help retain lockdown shoppers and maintain value-for-money satisfaction ratings in convenience stores. PMPs are particularly important for impulse categories reassuring shoppers they are not being overcharged and helping retailers maintain their competitive edge over supermarkets and discounters. In total, 46% of convenience shoppers purchase PMP products.”