In its latest research for the global convenience market, IGD, provider of foresight and analysis for the food and consumer goods industry, reveals that 70% of the top 10 global convenience retailers for sales per square metre are based in Europe.
Forecasted growth of the seven retailers is set to add EUR3.5bn in sales by 2026, which is a compound annual growth rate of 3%.
“Unlike other regions, the ‘top-up’ shop plays a significant role in European shopper habits and demand has increased as a result of the pandemic. Consequently, basket sizes are larger, which means stores need to carry a wider range of goods,” Charles Chan, senior Retail analyst and author of the report, explains. “Moving forward, the sector will need to maintain and grow its market share by focusing on neighbourhood stores and expanding its ranges. Convenience retailers have benefited from shoppers supporting local businesses, so focusing on long-term loyalty is a priority. Brands need to go beyond price, looking at engagement and customer experience, both of which are returning to the forefront as COVID-19 restrictions continue to ease.”
In the UK alone, convenience sales are forecast to grow by 12.5% (+GBP5.5bn) by 2026, driven by a continued focus on neighbourhood locations, underpinned by higher levels of working from home and suburban living. From a global perspective, the convenience market is continuing to grow at pace driven by the USA, China and Russia, with 7-Eleven maintaining a significant lead globally. The top 10 players will add USD43.1bn in sales by 2026, which is a CAGR of 3.7%.