What does 2025 hold in store?

8 January 2025

Our SLR Awards sponsors discuss the key challenges and opportunities facing the Scottish convenience channel in the year ahead.

Christie & Co

Steve Rodell
Managing Director – Retail & Leisure, Christie & Co

One of the biggest challenges retailers will face this year will be keeping operating costs down. They face higher staffing costs, following the increases to National Minimum Wage and employers’ National Insurance contributions announced in the Autumn Budget, as well as costs to comply with legislation on waste and net zero.

A key opportunity for store owners will be embracing new technology and data capture, to help lower costs. A good example is electronic shelf-edge labels with associated stock management software. Prices can be instantly and remotely updated, saving time on the shopfloor and freeing staff to ensure stock is replenished.

Coca-Cola Europacific Partners

Kate Abbotson
Senior External Communications Manager, CCEP GB

There will be a variety of key trends at play in the soft drink category in 2025. These will include sustainability, healthier choices and digital integration.

Nearly half (48%) of the category’s growth in the first half of 2024 came from new launches¹ and NPD is one of the main reasons that soft drinks remain so vibrant, growing in value by 24% over the past five years² – appealing to more consumers, on more occasions.

By aligning their strategies and working together, retailers and brands can effectively tap into key trends and create a dynamic shopping environment that meets the evolving needs of consumers.

1. Nielsen Total GB value data MAT to 15.06.24
2. Nielsen Total GB & CGA Total GB value to June 19 – June 24

Hovis

Dan Phelan
Hovis Wholesale & Convenience BAM (SNAM)

In 2025, Scottish convenience retailers can expect growing demand for innovative and more premium bread options that deliver on taste and quality. Hovis has recently expanded its product range with the launch of the new Hovis Farmhouse Batch, made with a traditional starter dough; it delivers a deliciously soft and creamy texture while also offering a more premium, tasty white loaf at an accessible price point.

Health also continues to be a focus for shoppers especially as more consumers are becoming increasingly interested in health and gut health. Hovis is well placed to deliver in this space, with our strength in Wholemeal and Bread with Bits – a great platform to build on.

Barr Soft Drinks

Lucy Henderson
Marketing Director at AG Barr

The Scottish convenience sector is amazing and so resilient. There will undoubtedly be challenges, but we have no doubt that businesses will continue to thrive in terms of store development, innovation and partnerships. Social media will become an increasingly important tool to engage their shoppers and keep on top of trends.

In soft drinks, consumers want to see bigger and bolder flavours. Health and wellbeing will influence even more purchasing decisions across all categories, which will lead to increased demand for lower calorie products that still taste great. There also continues to be a significant reduction in alcohol consumption for many adults, with 60% moderating their alcohol intake last year¹.

1 Kantar January 2024

PayPoint

Steve O’Neill
Chief Marketing and Corporate Affairs Officer at PayPoint plc

As 2025 dawns, retailers must adapt to the evolving needs of local communities. Despite the cost-of-living crisis, the reliance on local services is clear. With fewer bank branches, retailers can offer essential financial services like cash deposits and cash withdrawals. The rise of online and second-hand marketplaces has also increased the importance of parcel services in stores, providing convenient places with longer opening hours in local communities that people can use to send and receive goods. Retailers should consider how they can offer additional services like these to help drive footfall and increase sales.

Booker

Barry Forbes
Retail Development Controller, Booker

At Booker, we are proud to serve our retailers across Scotland, offering the best service, choice and price to allow them to invest and continue to grow their business. In 2024 we saw Premier reach its highest level of recruitment, which is a fantastic achievement. 2025 is looking positive for our Scottish retailers, and I have no doubt all our retail brands will continue to see growth in the year ahead, thanks to their continued hard work, commitment and dedication.

PGMA

Martin Devlin
Commercial Manager, PGMA

2025 may well become a year that lives in the memory. On the back of both the UK and Scottish budgets, Scottish retail has been dealt a very tough hand and although all the focus is on costs and cost reductions, the winners will be those who have not only had efficiency at the heart of their operation, but innovation and ingenuity. Standing still is not an answer to the challenge we have all just been dealt – making the correct choices in 2025 will deliver success. Continued development of the Fresh and Chilled category is a priority at PGMA, and PGMA may well be the correct choice for you in 2025.

Four Loko

Andy Ferguson
Business Development Scotland, Red Star Brands

Investing over £94m in 2024, Scottish retail operators, including forecourt convenience channels, will become ever more vibrant retail and community hubs, offering a fast-moving, high-POR range of products and services. An innovative high-impact, good-value alcohol range focused on chilled ‘drink-now’ brands like RTD leader Four Loko, along with high-quality food to go and vapes will increasingly drive footfall and incremental spend over the essentials.

Shared retail sales data, AI and mobile technology will influence brand investment, shopping location and delivery options. Retailer flexibility and speed will be an essential advantage over supermarket-convenience options. It’s all to play for; the UK convenience market is expected to grow £5bn by 2027 [Lumina].

Rockstar

Suzie Dixon
Channel Director of C&I, Britvic

2025 is set to be another exciting year for convenience, with many opportunities for growth in soft drinks! The category is the #2 purchased in convenience and #1 within a food-to-go mission, which highlights the importance of a c-store’s soft drinks offering. NPD will continue to play a crucial role in engaging shoppers within the category, enticing shoppers into store in search of the latest exciting offerings. At Britvic we have a jam-packed calendar of campaigns and launches in 2025, and we look forward to continuing to support c-store retailers this year and beyond.

MHouse

Faisal Sattar
CEO, MHouse

EPoS systems have evolved into comprehensive business tools that not only process transactions but also provide actionable insights into customer behaviour. In 2025, we expect to see a deeper integration of EPoS with AI-driven inventory management, predictive analytics, and even staff scheduling, ensuring that the convenience channel remains both competitive and customer-centric.

DoubleCOOL

Zoe Colman
Business Development Manager, DoubleCOOL

DoubleCOOL predicts that 2025 will bring energy saving and cost reduction into sharp focus for Scottish convenience stores. DoubleCOOL doors ensure that chillers are working at optimum temperatures, keeping produce fresh, reducing energy usage for both chiller and heating systems, and minimising food waste. This conserves both the environment and margins for retailers. We are on a mission to fit doors on open fridges, to save retailers money, support the environment and improve the in-store experience for shoppers and staff alike. In 2025 we aim to help even more Scottish convenience stores to install our sustainable, double-paned, acrylic door solution.

News Scotland

Scott McCulloch, Head of Retail, News Scotland & News Ireland

The Newstrade category continues to be a vital footfall, sales and profit driver for the local retailing sector in Scotland and we are delighted to once again sponsor this award. News has long driven seven-day sales in stores, bringing customers to your door every day of the week and driving additional impulse sales. Retailers that continue to highlight the category in-store, on social media and through home delivery continue to prosper from the category.

The SLR Awards provides a fantastic platform for recognising and rewarding retailers that drive their business forward with news and we would urge all local retailers to take their successes and learnings on board for 2025. News remains a critically important category delivering high-quality, reliable content and entertainment on a daily basis.