Facing a cost of living crisis, the decline of tobacco sales and the rise of major mults in the convenience space, symbols are pulling out all the stops to attract retailers and protect margins
The fightback is on. After years on the back foot, symbol groups are regaining momentum, and the evidence is visible in growing store numbers and bold investment.
Premier hit a milestone of 5,000 stores in November
. Select & Save is betting big on its refreshed branding and a new supply deal with Booker to drive estate growth. And Co-op wholesale is modernising Nisa with a fresh fascia and enhanced in-store proposition, positioning the symbol group at the “premium end of the value tier”, according to Co-op Wholesale MD Katie Secretan.
“We’ve been really clear that 2025 was about building, this year is about delivering,” she adds. “We don’t just want to be a sign – it’s about being a high-standard symbol operator that retailers recognise.”
That’s the key. After years of wading through economic treacle post-pandemic, the market is recognising that a fascia alone no longer cuts it. Retailers are seeking partners that will future-proof their business through value, protected margins and operational efficiency – and fascia operators are evolving to win them over. The pressure is on and competition is fierce. So how are symbol groups and franchisors responding?
Since Covid – when availability was the main battleground – retailers have been hit by cost pressures, labour shortages and retail crime, creating a “far more disciplined and commercially demanding” retail environment, according to SimplyFresh MD Kash Khera. Retailers now want a proposition that works in “a high-cost, low-tolerance market”, he says.
It’s a fair expectation. With retailer margins and performance under pressure, symbol group and franchise operators are being increasingly scrutinised on their ability to act as true commercial partners, rather than simply supply stock.
According to Lumina Intelligence Market Sizing Insight & Analysis in June 2025, many symbol groups have seen strong growth in store numbers, but that has not shielded the sector from trading pressures. Value across the symbol group sector dropped by 1.2% to £18.3bn, highlighting the challenging conditions independent retailers are facing – and the level of support they are expecting from symbol partners.
“Ease of retailing has become a non-negotiable,” says Bestway Wholesale MD Dawood Pervez. “Retailers want propositions that simplify operations, reduce friction and allow them to focus on running a profitable business. The economic landscape has intensified the importance of commercial competitiveness.”
In other words, the race is on. With cost of living pressures continuing to bite, retailers need a compelling value offer to draw shoppers away from discounters and supermarkets – without eroding their margins.
How the major mults are upping the ante on price again
This month, Asda opened its 500th Express format and it continues to ramp up its small-store game.
But perhaps the biggest impact it’s having on the convenience market will be its latest pricing moves. Indies and symbols have long found it difficult to compete effectively on price, and in November Asda told The Grocer it was stepping up its value strategy in convenience.
The plan is to match its supermarket prices on core lines, as well as launching exclusive promotions in its Express stores.
Already Tesco offers Clubcard Prices in its Express stores, and in November 2024 Sainsbury’s introduced Aldi Price matching in its Local stores, followed by a similar initiative from Tesco Express at the start of last year, and The Co-op’s Aldi Price Match, which launched in March.
Range and availability will continue to be crucial for independents when it comes to choosing wholesalers or symbols, but price will clearly be right up there this year so the independent does not lose touch on price. This is certainly a sentiment shared by Londis retailer Nishi Patel.
“Symbols need to become true commercial partners because the multiples are winning – they’ve got a plethora of funds where they can invest in prices and open stores,” he explains. “Symbols must prioritise prices, margins and services otherwise they’ll lose to the big players – we have to be more competitive.”
There’s evidence wholesalers are listening – the latest example coming just this week, when Select & Save introduced a price match campaign targeting the Co-op.
Alex Kapadia, who runs five stores with Morrisons Daily and Wine Rack, says: “People who are time-poor used to rely on us for more than a top-up shop, but that’s being negated by financial pressures. Strong promotions and competitive wholesale pricing are critical.”
He’s not alone. According to Lumina Intelligence, 18% of retailers find promotions and price-marked packs are the main reason to stay with their symbol group – or join another where these are stronger.
Wholesalers are responding with targeted pricing and promotional support. Bestway pumped £10m into reducing the wholesale price of more than 2,000 core lines last year, while Parfetts has introduced daily promotional deals at its depots to drive volume and protect margins.
“Retailers want a partner that makes life easier while helping them maintain healthy returns. The ability to deliver consistent margin, a dependable delivery service and strong pricing and promotional activity matters now more than ever,” says Parfetts joint MD Guy Swindell.
Co-op Wholesale has also enhanced its pricing and promotions strategy under a new trading and propositions team that was created to give it the “freedom, power and complete autonomy” to decide on ranging, pricing, activations, and promotions.
“We’ve taken steps to become really focused on the products that matter to our shoppers,” says Secretan. “We’re doing fewer promotions but going much deeper, so retailers can trade hard through the important weeks of the year and get the right levels of margin.”
While price cuts and promotions may grab the headlines, rebate schemes are clearly vital to protect margin. Select & Save is positioning rebates as a key pillar in its commercial proposition for independents. Its tiered rebate scheme, which starts at 0.5% from around £7,500 in weekly spend and can go up to 5.5% at higher spend levels, remains one of the most competitive in the sector. The symbol group is also set to launch an initiative by the end of Q1 designed to reward retailer loyalty by returning commercial revenue based on simple criteria.
The growing role of own label
Select & Save has also been reaping the benefits of its new supply deal with Booker, which started early last year. That means its retailers can now take advantage of Booker’s own-label Euroshopper and Jack’s brands.
It’s no secret that own label has become a crucial factor in helping retailers stand out. Spar continues to invest in its own-label range, launching about 100 products annually. It now comprises more than 1,000 products, covering categories like fresh, grocery, frozen and alcohol, and includes many price-marked products and seasonal lines.
“Retailers today are looking for a careful balance between freedom and support,” says Spar UK retail and brand development director Ian Taylor. “They want to retain control of their businesses and the ability to tailor their offer to local shoppers, while also benefiting from the scale and backing of a strong symbol group, which includes access to a credible own label.”
Co-op Wholesale also made some notable moves within own label by expanding the range available to independent retailers. It launched Co-op’s dine-in own-brand range Served into the wholesale channel, so retailers can take advantage of the ‘dinner for tonight’ mission while also upgrading its food-to-go options.
“To make our independent retailers sustainable for the future they’ve got to think about how they change their offer and their proposition,” says Secretan. “We know that delivering a fresh offer and brilliant missions through food for now and food for later is the way they can protect their business against the tobacco decline.”
While competitive pricing and own-label ranges attract retailers, it’s often operational support that keeps them loyal – especially access to data and insight. After all, helping them become ‘more efficient’ was the second most popular incentive cited by retailers (37%) for staying with or joining a new symbol group, according to Lumina Intelligence research.
“Wholesalers and symbol operators must improve the way they communicate their data and industry insight with their members,” says Costcutter retailer Paul Cheema. “It changes our thinking, improves category management and cuts out slow-selling stock, which ultimately improve sales and margin. This will help retailers as cost pressures increase.”
Parfetts is leaning into category-led support. In November, it launched Energy Zone, the first branded category zone on its website, in partnership with Red Bull, to help retailers drive sales in the energy drinks category. It brings together PoS, best-practice planograms and category advice to help retailers optimise space and boost profits. Parfetts expects to roll out other category zones in the coming months.
Bestway, meanwhile, has doubled the number of retailers participating in its forum and introduced north and south cohorts to capture regional insight. “There’s no better way to build a retailer proposition than listening to retailers themselves,” says Pervez.
Even with upgrades to fascias, promotions and operational support, retaining retailer loyalty isn’t easy. While 95% of retailers expect to still be using their wholesaler 12 months from now, according to Lumina Intelligence, 33.7% say they are likely or very likely to switch symbol group over the same period, highlighting a major recruitment opportunity – and operators are acting.
Take Londis. Over the past year, more than 190 stores have joined the group, with 71% converting from other fascias, it says. It’s been showcasing retailer success stories and targeting competitors’ stores where there is a “clear opportunity to improve profitability”.
Morrisons, meanwhile, has introduced regional roadshow events. These give prospective retailers an opportunity to see its manufacturing capability first-hand, gain a deeper understanding of how its products are made and engage directly with its recruitment team in a more immersive setting.
And SimplyFresh has invested in field recruitment, site assessment tools and store development resources while working closely with Bestway’s national infrastructure to drive more coverage. It’s also using retailer referrals more actively because “peer validation carries real weight”, adds Khera.
He predicts “the next phase will reward symbols that combine brand credibility, commercial realism and operational support. That’s where we’re focused.”
Loyalty schemes: the new battleground in convenience
As margins tighten and competition from the mults ramps up across the convenience sector, loyalty schemes are emerging as a key driver of growth for footfall, basket spend and customer retention. And wholesalers are increasingly arming retailers with the necessary tools.
Morrisons rolled out More Card to Morrisons Daily franchisees in the summer – the first time independents had got access to a supermarket loyalty scheme.
Elsewhere, Premier is trialling its own scheme with 20 independent stores. It offers points on every £1 spent alongside loyalty-only deals and discounts. The Booker-owned symbol group says loyalty members are spending more as a result, with average basket spend topping £12, compared with just over £9 for non-loyalty shoppers.
At Spar UK, loyalty is also “firmly on the radar”, according to MD Michael Fletcher. At James Hall, which supplies Spar stores across the north of England, a scheme called Spar Rewards is gaining traction with retailers and shoppers. While in its early stages, Fletcher says the focus is on refining the proposition and customer experience alongside independent retailers. Northern Irish Spar wholesaler Henderson Group is also testing a loyalty concept internally with its 6,000 colleagues.
One Stop has also made moves in loyalty – but not yet for independent franchisees. Customers can collect Tesco Clubcard points at a small number of company-owned One Stop stores, but there are no current plans to extend this trial to franchisees.
