Convenience stores are experiencing rapid growth alongside supermarkets expanding their reach.
- In the first half of 2024, 85 convenience stores were opened, driven by major grocery chains prioritising smaller sites.
- Asda, Morrisons, M&S, and Waitrose have announced significant expansion plans for their convenience formats.
- A £1bn investment has been made by retailers to refurbish stores and enhance energy efficiency and security.
- The trend reflects a shift towards catering to hybrid consumer lifestyles and immediate needs.
Convenience stores are currently in a unique growth phase, with more than one opening each week, as indicated by recent data from PwC. In the first half of 2024 alone, 85 new stores surfaced, marking a significant increase in the sector’s presence.
This expansion is primarily driven by several leading grocery chains focusing on smaller, more accessible stores. Asda, for example, plans an unprecedented opening of 110 Express stores, most of which involve converting former Co-op and EG Group sites. Similarly, Morrisons aims to boost its Morrisons Daily outlets by 400, aspiring to achieve a total of 2,000 smaller stores by 2025.
Marks & Spencer and Waitrose are also joining the convenience surge. M&S has unveiled intentions to open 10 new stores while revamping up to 50 existing ones to support its £1bn convenience business. Concurrently, Waitrose is investing in up to 100 new openings over the next five years, underpinning a broader £1bn strategy.
The cumulative investment of £1bn by convenience retailers over the past year underscores a robust commitment to modernize store interiors and improve operational efficiencies. This includes enhancements in energy-efficient refrigeration and lighting systems, as well as advancements in security measures to deter crime.
This surge in convenience outlets aligns with consumer preferences for more adaptable shopping experiences that satisfy immediate needs and offer a sense of engagement and enjoyment, as articulated by Lisa Hooker of PwC.
The expansion of convenience stores reflects a strategic response to evolving consumer demands for greater accessibility and modern shopping environments.
