New store openings will help fuel the channel’s annual growth rate.
The UK convenience market will grow by £6.9bn in the next five years and will reach £48.2bn by 2024, according to IGD.
The market research firm says the channel will benefit from new store openings over the period that will help fuel a compound annual growth rate of 3.1%.
Patrick Mitchell-Fox, senior business analyst at IGD said that total convenience sales are expected to grow by 2.6% this year, after a 3.2% increase in 2018.
“This growth is being led by the cooperatives segment above all, driven not only by a focus on opening new stores, but also by outstanding like-for-like performance underpinned by strong private label development, better fresh and chilled ranges and more competitive value,” he said in a statement.
Cooperatives, multiples, and symbols are seen to benefit again from strong store growth in 2021.
Multiples, which continue to see solid growth, are now targeting to open new stores in sites with the best potential. Meanwhile, the symbols segment is beginning to pick up again after a year of slower growth.
IGD has also identified in their research three factors which shape the future of UK convenience channel: driving top-up shopping, attracting new shoppers, and evolving the “mission-based” shop.
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