Brits flock to convenience stores during coronavirus lockdown

The coronavirus pandemic has given a massive boost to UK convenience stores, helping the market grow by more than double the rate achieved in 2019.

According to Mintel research, sales will grow by almost 8% in 2020, compared to the 3% achieved last year.

The significant increase in in-home food and drink experienced as a result of Covid-19 will see the convenience store market increase from £44.1 billion in 2019 to an estimated £47.5 billion in 2020.

This is despite the hit to ‘on-the-go trade’ such as items eaten out-of home, including those for breakfast and lunch. This rate of growth is outperforming the wider grocery sector, which is expected to grow by around 6% in 2020.

Such a peak in demand will not continue into 2021, however, particularly if social distancing measures are further relaxed and consumer budgets are increasingly squeezed. Mintel estimates a decline of -3.9% in the market in 2021, as it rebalances before reaching more consistent lower growth through to 2024 (of 2-3%) when the market is forecast to reach £49 billion.

Overall, 94% of convenience store users (or almost 80% of all internet users aged 16+) use a convenience store at least once a month.

Nick Carroll, Associate Director of Retail Research, says: “It is encouraging for the sector that providing essential services to the community is widely held by today’s shoppers - this is what convenience stores are all about. A major long-term positive of the crisis will be how the ‘essential’ status of convenience stores in communities will be reinforced."

"Localism and a more internal looking consumer base was a trend far before Covid-19, but naturally confined to local areas, consumers have become more aware and engaged with their communities. Combined with this is a growing realisation of the need to support small business owners, which much of the symbol operators, such as Nisa or Spar fall into.”