What: British larger retailers are looking to venture into the sector with smaller store formats.

Why is it important: Convenience now accounting for 22% of the UK retail grocery market and shopping convenience stores online could only be a growth opportunity.

There are many national operators in the UK, such as the Co-op, McColl’s, Waitrose, M&S Food, Tesco, Sainsburys and Spar, which each have convenience store formats and stock a wide range of products. In recent times, major supermarkets such as Asda and Iceland expressed interest in venturing out into smaller store formats.

Despite established retailers trying convenience store formats, Brits are choosing to support their independent and local retailers rather than established chains: almost two-thirds of Brits have been shopping locally in the last 12 months. This growing trend is set to outlive the pandemic, with 91% saying they will continue shopping locally to support smaller and independent retailers even after all restrictions end. The share of non-affiliated independent convenience stores in the UK accounted for 40% of the market last year.

“The convenience market had been growing robustly prior to the pandemic, and the impact of Covid-19 on societal trends has served to reinforce that growth, with convenience now accounting for a 22% of the UK retail grocery market. Furthermore, customers have become increasingly used to shopping convenience stores online. We see this online last-mile delivery as an incremental growth opportunity, which is why we struck a partnership with Uber Eats last year to offer home delivery from over 400 of our stores”, McColl’s said.

As changing shopper habits and the pandemic have altered the UK retail landscape, the function of convenience stores has expanded beyond just a quick stop for a newspaper and bottled beverages or snacks. By evolving to offer a diverse range of products and services, convenience stores have become a viable alternative for consumers to purchase essential everyday items.

Consumers nowadays may be increasingly surprised to find such a range on offer at their local corner shop, but it could be a taste of things to come. Local entrepreneurs are continuing to step up their fight against the encroachment of Tesco, Sainsbury’s, Waitrose and M&S into a market once dominated by independents.