Food and grocery spending in UK convenience stores is projected to reach £43.2bn by 2028 – outpacing supermarkets, and discounters, according to the latest data from GlobalData.
However, stores must focus on their price positioning to remain competitive, the report warned.
Aliyah Siddika, Retail Analyst at GlobalData said the shift in UK consumer behaviour “towards frequent top-up shopping” had created “substantial growth potential in the convenience market.”
Pre-pandemic, consumers working in the office full-time had less time to cook dinner after work. However, with the shift to hybrid work models, consumers now go into the office a few times a week and are more likely to have the time to prepare meals ahead of the days they are in the office to save money.
Convenience retailers should promote low prices on their fakeaway options to entice consumers to visit on their way home from work for an affordable yet indulgent meal, the report said.
“When offering deeper price cuts in convenience formats, grocers must target price promotions towards items that consumers are more inclined to purchase during the workweek. Such as food-to-go ranges, ready meals, quick dinners, and treats to capture spending from commuters,” Siddika added.