Latest data from the Lumina Intelligence Convenience Tracking Programme shows the average weekly value of convenience store shoppers decreased by 1.2% to £23.27 during the four weeks ending 25 July.
During the same period, the average basket size remained stable at 2.8 items per trip. Lumina Intelligence suggested this could be a sign that shoppers are becoming more budget conscious and opting for alternatives to higher value items.
This is apparent in a decline in impulse purchasing, which decreased by 0.7ppts during the four weeks, as consumers increasingly restricted spending on non-essentials. Impulse items were increasingly purchased due to promotions, further emphasising a move towards value-conscious shopping.
The average visit frequency of convenience shoppers has also fallen slightly, from 2.8 times per week to 2.6. This reflects the easing of restrictions and pre-pandemic shopping habits returning.
This is further highlighted by a decline in the proportion of shoppers using delivery and click & collect. The proportion of shoppers using delivery fell 4ppts, from 7.1% to 3.1%. Click & collect saw a decline of 1.9ppts, from 2.2% to 0.3%.
Katherine Prowse, Senior Insight Manager at Lumina Intelligence, commented: “With restrictions easing, convenience stores are having to compete with other grocery channels, as well as hospitality. Shoppers are becoming more comfortable out and about, so larger shops within supermarkets are more prominent.
“As hospitality reopens and events return, there is also a challenge around budgets. Shoppers will be keen to make up for lost time, which could result in them becoming more budget-conscious with their groceries. This is already apparent with spend declining and impulse purchasing on promotions increasing. Retailers can lean on this demand for promotions to drive footfall and highlight value.”
NAM Implications:
- Understatement of the year…
- We are heading into one of the darkest, coldest winters…
- …amid mounting uncertainty re job security, inflation, taxation, Govt service reduction (you name it…)
- ‘You ain’t seen nuttin’ yet!’
