Data published in the latest Lumina Intelligence Convenience Market Report 2024 reveals that the channel’s strong growth is being driven by strategic expansion, acquisitions, and tech-led innovation.
The study notes that leading convenience fascias are expanding their estates through targeted acquisitions, positioning themselves for continued growth. The top 10 convenience fascias are forecasted to achieve a combined average growth of 5.8% in 2024. Notably, Asda Express is expected to lead this growth with a 41.7% increase in outlets, fuelled by site conversions from recent Co-op and EG Group acquisitions. Nisa follows with 17.7% growth, driven by targeted forecourt store recruitment.
The report also highlights that to meet shopper needs and enhance commercial viability, retailers such as Bestway are adopting hybrid store models. These models blend convenience with destination categories, including premium off-licenses, foodservice-standard food-to-go, and soft drinks. Lumina Intelligence notes that by offering a wider range of products and services, these stores can appeal to broader customer bases, providing a competitive edge in the market.
Meanwhile, technological advancements are playing a crucial role in the growth of convenience stores. Retailers like Premier and SPAR are leveraging technology to streamline in-store processes and enhance operational efficiency. In a significant move, Tesco has introduced AI-powered ‘Clubcard Challenges’ to personalise the shopper experience and boost customer engagement and loyalty.
NAM Implications:
- Patently those suppliers wishing to optimise their convenience route-to-consumer…
- …can benefit from this update.
