New research shows that nearly one in five products bought in convenience stores are sold in areas that face restrictions under the forthcoming government regulations on food and drinks high in fat, salt or sugar (HFSS).
The legislation, now due to come into force in October 2022, is set to impact stores over 2,000 sq. ft. or with more than 50 staff and will include restrictions on promotions and product placement of HFSS products.
According to the new Lumina Intelligence UK Convenience Market Report 2021, 19% of convenience store purchases are picked up in areas that will face restrictions under new legislation:
| Location | % who pick up product from location |
| Display on the end of an aisle | 7.9% |
| Display at the front of the store | 5.8% |
| Display at the till | 5.7% |
The study shows that younger shoppers are more likely to pick up purchases in HFSS restricted areas, notably 18-24s are over 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.
In total, Lumina Intelligence found that 54.5% of convenience store shoppers purchase on impulse. Of the top ten 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 were to be ‘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, Lumina Intelligence highlighted that there is a risk to the sales of these categories for stores that are impacted by the legislation.
Meanwhile, the research shows 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: “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?”
“Preparation is critical, with retailers needing to work closely with brands to create a solution that suits everyone and mitigates the risks posed by HFSS. Alternative strategies such as introducing PMP lines, expanding meal deal and cross-merchandising options outside of the usual 3 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.”
NAM Implications:
- HFSS restrictions a real test for impulse and the pulling-power of instore hot-spots.
- i.e. a lot has changed since March 2020…
