The landscape of convenience retailing is evolving rapidly with a significant increase in store openings.
- In the first half of 2024, convenience stores saw over one new opening per week, totalling 85.
- Supermarkets are prioritising smaller store formats as opposed to traditional full-sized outlets.
- Major chains like Asda, Morrisons, M&S, and Waitrose are leading the charge in expanding their convenience store footprint.
- Retailers are making substantial investments to modernise stores and enhance energy efficiency.
Convenience stores are experiencing notable growth, being one of the few retail categories witnessing significant expansion. In the first half of 2024 alone, there were 85 new convenience store openings, highlighting a trend towards increased accessibility and consumer demand for quick-service retail formats.
Several prominent supermarket chains have shifted focus towards opening smaller-scale convenience stores, moving away from their traditional larger outlets. This strategy has been attributed to changing consumer preferences that favour convenience and immediate access to goods.
Asda, for instance, announced an ambitious plan to launch 110 Express stores in February 2024, primarily through the conversion of former Co-op and EG Group sites. This initiative underscores Asda’s commitment to strengthening its presence in the UK convenience sector.
Morrisons also unveiled plans to significantly increase its number of smaller stores, aiming to establish 400 additional Morrisons Daily outlets. Their goal is to operate 2,000 such stores by 2025, indicating significant confidence in the convenience store market.
Similarly, M&S and Waitrose are making substantial investments in their convenience formats. M&S plans to open 10 new stores and refurbish up to 50 existing ones in 2024, while Waitrose has committed to opening up to 100 new convenience stores over the next five years.
These expansions come amidst a broader investment trend where retailers have collectively spent £1 billion on store refurbishments. These investments include upgrades to energy-efficient refrigeration, lighting, and security systems, reflecting a commitment to sustainability and modern retail demands.
The rapid expansion of convenience stores reflects a strategic response to changing consumer habits and a commitment to sustainability.
