IGD: convenience market to be worth £42bn by 2016

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IGD: convenience poised to grow market share

IGD: convenience poised to grow market share

Figure released at the IGD’s Convenience Retail Conference today (10 November 2011) reveal the UK food and grocery convenience sector is set to grow to £42bn in five years’ time.

According to the IGD, this means the sector will have increased in value by more than a quarter form its current value of £33.6bn in 2011. Convenience’s share of the overall food and grocery market is expected to increase to 22.9% by 2016, compared to 21.4% by the end of this year.

Shoppers are seeing increasing benefits from using the convenience sector – IGD ShopperTrack research found:

  • If fuel prices continue to rise, 50% of shoppers said they will use shops nearer to them to save on petrol costs
  • 40% of convenience store shoppers stated that the ability to walk to a store from home was a key factor when choosing a convenience store.
  • Convenience store shoppers use the format on average three times a week

Nick Everitt, director of retail insight at the IGD, said: “The convenience sector is doing well in challenging conditions and outperforming the wider grocery market.

“The convenience market’s success is down to a number of factors, including an ability to adapt to the changing demands of the UK population. Shoppers are, for example, increasingly favouring a ‘little and often’ approach, and convenience operators are responding by offering a wider range of product choices, including more fresh and chilled foods, such as fruit and vegetables.”