The UK convenience market is forecast to reach a value of £45.2bn in 2022, with growth of 3.2% versus 2021, according to the new Lumina Intelligence UK Convenience Market Report 2022.
This follows a small decline in 2021 of 0.8%, as market growth slowed due to hospitality reopening and coronavirus restrictions easing.
The market is also expected to see positive, albeit modest, outlet growth of 0.6%, with a post pandemic property boom creating greater prospects for operators to expand.
Co-operatives and convenience multiples are expected to be the top performers with turnover up 5.6% and 3.8% in 2022. 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 convenience market is expected to total £48.6bn in 2025, with a compound annual growth rate of 2.6% forecast between 2022-2025.
Commenting on the findings, insight director at Lumina Intelligence, Blonnie Whist, said: “UK convenience retail remains in a strong position. Despite cost of living challenges, the market will benefit from a resurgence in on the go missions in 2022, as shoppers seek more accessibly priced options compared to foodservice channels. Leveraging different store formats, including grocery-led, food to go-led, service-led and delivery will be key to growth across the next three years.
“From a delivery perspective, retailers need to capitalise on events including the Women’s Euros and the FIFA World Cup through encouraging shoppers to use delivery for entertaining and nights in.”
Find out more about the Lumina Intelligence UK Convenience Market Report 2022 here.
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