Business Spotlight: Convenience Sector
Embracing today's fast-paced lifestyles, the convenience sector revolutionises the UK's food and drink industry, offering swift access and tailored solutions for modern consumers.
Our Viewpoint
In 2023, the convenience retail sector within our business experienced significant growth, a total of 11% compared to 2022.
Convenience retail is continuing to evolve with the sector actively competing against the larger supermarkets for on-the-go trade. The sales of crisps, snacks and nuts has been a big fuel for growth within convenience retail, making up almost 40% of total sales within the sector.
Sweet and savoury products from Snak Shed & Yorkshire Flapjacks indulgent bars have been a huge hit with retailers, fuelling the consumers demand for quick, satisfying, quality snacks on the go!
Retailer’s Insights:
A snapshot of convenience retail sector, from David Chapman, Pricewatch Ltd.
David Chapman, the compliance manager at Pricewatch, a dynamic petrol station convenience retailer, shares five invaluable insights and key takeaways aimed at improving how convenience stores can operate more efficiently.
1. Dominance of on-the-go snacking.
Pricewatch sites primarily cater to commuters who are after a quick and reliable service, and local shoppers who depend on their stores for a quick top up shop.
Consumer demand leans heavily towards quick, grab-and-go options rather than healthier, more sustainable products.
“Our popular lines are always snacking and food to go. Hot food, soft drinks, and snacking.”
“Our core customer base is convenience food on the move.”
2. Key consumer drivers
Chapman considers speed of service, locality, and customer service as the three key drivers to attract consumers to their stores. These factors attract shoppers seeking quick solutions for their immediate needs.
3. Food-to-go categories see highest instore traffic.
Chapman explained that the typical shoppers often head straight to the food-to-go section of the store for either a quick snack to go, or a meal day for later in the day. The majority will then head straight to the till, with a lower percentage opting to browse the store. This is where a strategic store layout becomes imperative.
“Grouping entire sections together enhances the consumer experience. For example, having all the hot food and dispensing drinks together not only makes it easier for the customer, but also encourages a higher spend.”
4. Demographic is key with customer habits.
In such a limited retail space, strategic product selection and positioning is vital, but what can be right for one store isn’t always viable for another. This is all down to the differing consumer demographics of each site. The use of sales data allows each store to decide on shelf space, in store fixings and product ranges to maximise sales and optimise the consumers in store experience.
“This is why we allow sites to have autonomy to do what is best for customers and the store."
5. Consumers are willing to pay more for quality products.
Chapman explains how there's been a shift in consumer behaviour from solely considering cost to prioritising quality and value for money.
“Customers don’t mind paying a little more than average if the quality is there to match it. I see more people wanting a faster, sleeker service and to spend as little time as possible in shops.”
Implementing a well consider store layout, combined with quality ranges will encourage repeat customer and maximised sales.