Convenience transitioning to ‘mini-supermarket’ model


Retailers can expect more mass consolidation, the continuation of supermarket diversification into new areas and a change in consumer eating and spending habits in 2018 according to GlobalData.

Although it is unlikely that we will see the same level of industry wide change in 2018 seen over the past 12 months, the data and analysis firm expects further change in the food retail market as the industry adapts to 2017’s changes and inflation continues through the year.

GlobalData has predicted a price war in convenience – with the consolidation of the wholesale convenience market, there will be an intensification of competition in the convenience market throughout 2018.

“Just as we saw from 2012-2016 with the discounter-led price war, as soon as one party moves to bring prices down, everyone moves,” said Molly Johnson-Jones, senior retail analyst at GlobalData.

“This will lead to margin erosion for convenience operators, and many independents will be pushed out of the market.”

The consolidation of symbol groups, said Johnson-Jones, will precipitate a homogenisation of convenience stores, as many move towards a ‘mini-supermarket’ type model.

“This is also driven by the shift in consumer shopping habits – younger shoppers are increasingly using convenience stores for their weekly shops, with 25.3 per cent of 25-34 years olds using them for their main shop.


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