The rise of convenience stores is a notable trend in the retail industry.
- In the first half of 2024, there have been 85 new convenience store openings.
- Major supermarket chains are prioritising smaller format store expansion over larger supermarkets.
- Significant investments are being made to enhance convenience store facilities.
- This shift responds to consumer demand for easily accessible and engaging shopping experiences.
In a recent analysis of retail industry trends, it has been observed that the number of convenience stores is one of the few categories experiencing robust growth. With data from the first half of 2024 indicating 85 new openings, these stores are becoming increasingly prevalent across the UK.
Several large supermarket chains have strategically decided to expand their network of convenience stores rather than their traditional larger outlets. This strategy is exemplified by Asda, which announced plans to open a record 110 Express stores. Notably, 109 of these new outlets are conversions from former Co-op and EG Group sites, highlighting a trend of transforming existing spaces to meet the growing demand for convenience shopping.
Morrisons has also shown a strong commitment to this market, with plans to open 400 additional Morrisons Daily stores. Their broader strategy includes reaching 2,000 smaller store openings by 2025. This ambitious expansion reflects their goal to cater to the increasing consumer preference for easily accessible shopping options.
M&S is contributing to this trend by unveiling plans to open 10 new convenience stores within the year and revamping up to 50 existing ones. Similarly, Waitrose has committed to opening up to 100 new convenience stores over the next five years as part of its substantial £1 billion investment strategy.
According to Lisa Hooker, PwC’s leader of industry for consumer markets, the retail environment must evolve to address hybrid working lifestyles and contemporary consumer desires for quick, varied, and enjoyable shopping experiences. This evolution is supported by significant investments totalling £1 billion, aimed at refurbishing stores with modern amenities and sustainability features, further indicating the sector’s response to evolving consumer needs.
The strategic shift towards expanding convenience store networks reflects a broader response to consumer preferences and market demands.
