The cost-of-living crisis has prompted UK shoppers to seek better value, except in convenience stores.
- Research reveals convenience store shoppers pay over £800 more annually than supermarket customers.
- Tesco recently addressed this by replacing 50 Express store items with cheaper alternatives.
- Morrisons followed suit, introducing Savers products to over 500 stores.
- Pressure mounts on other grocers to adopt similar budget lines in their convenience stores.
The ongoing cost-of-living crisis has intensified consumers’ search for affordability, especially in supermarkets and local shops. However, convenience store patrons have found themselves at a financial disadvantage, often paying significantly more than those who shop at larger outlets. According to research by Which?, consumers frequenting convenience stores rather than supermarkets face an annual cost increase of over £800.
In response, Tesco announced an initiative to replace 50 products in its Express stores with more economical alternatives, primarily from its own-brand selection. These changes were celebrated by many as they positioned Tesco as a leading value provider among convenience store chains. The organisation cited shopping data indicating a growing consumer shift towards own-brand products for better value without sacrificing quality.
Similarly, Morrisons has expanded its Savers range to more than 500 Morrisons Daily stores. These entry-level offerings, including essential items like eggs and butter, have been introduced due to significant consumer demand, particularly in areas lacking easy access to larger supermarkets. Morrisons acknowledges the pressures many households face and is adjusting its inventory accordingly.
Despite these moves by Tesco and Morrisons, the question remains why other grocers have been slow to adopt similar strategies. Morrisons Chief Executive David Potts indicated that the core issue is the limited profitability of entry price point items, which do not align with the higher operational costs of convenience outlets. The elevated costs associated with servicing these stores contribute to the higher prices consumers face.
Consumer advocate group Which? has been vocal about the necessity for supermarkets to integrate more budget-friendly lines into convenience stores. The group argues that such initiatives could be crucial in supporting financially constrained consumers, thereby responding to growing political and public pressure. While Tesco and Morrisons have made noticeable changes, the broader industry has yet to fully embrace these budget lines across all convenience locations.
As competition intensifies, it remains to be seen if other grocery chains will lower their prices and adopt budget ranges in their convenience stores.
