Convenience is leading the expansion race in the global grocery market. And nowhere is the trend more pronounced than in the U.K., where recently released figures from intelligence agencies Nielsen and IGD verify that convenience store growth is outrunning that of out-of-town supermarkets.
Given that only 15% of convenience stores are owned by supermarkets, the FMCG retail heavyweights are keen to seize hold of unoccupied territory. Sainsbury's is one of a number of UK grocers to target convenience as a central vehicle for growth. The retailer aims to add 75 - 100 new convenience stores to its 335-strong number in 2010/2011, and has its sights set on another 100 thereafter.
Not only was the convenience sector one of the key beneficiaries of recessionary shopper behaviour, but the consequent improvements made to its offering - particularly by way of private label and fresh produce expansion - have helped it retain its appeal to the post recessionary, value-coveting consumer. And, with the convenience store concept denying any manner of standard format, the scope for profit-yielding, complementary - rather than competitive - activity across city centre, high street and neighbourhood operations is almost a given.
In South Africa we have seen a similar trend of inversion of big and small where smaller stores, more accessible locations and abbreviated product assortments have secured return on investment. And it is the forecourt retailer that leads the trend as stakeholders Pick n Pay, Woolworths and Fruit & Veg City jostle for pole position.
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