The UK’s convenience grocery market is bucking the trend in performance, achieving growth far in excess of the five major supermarkets. But the real success story in this sector is the near double-digit growth of the fascia groups in the past 12 months.
Whilst expanded ranges and changes in consumer behaviour have played a part, much of the divergence between the performance of groups and the independents can be attributed to the quality and quantity of sales performance information now available at store level.
As a result there are clear signs of a change in attitude from the major manufacturers; companies are beginning to increase investment and the convenience market is now seeing bespoke promotional brand activity, which is further fuelling growth and reinforcing the customer value proposition.
Over the next five years, IGD expects the convenience market to grow to £42.3bn, representing compound annual growth of 5.5% compared with 3.7% in grocery.
Retailers, wholesalers and brand managers now have a real chance to exploit this opportunity.
Marcus Vallance, CEO, SalesOut