Britvic-SDR-Convenience-v14 FV - Flipbook - Page 26
Welcome
Sustainability
Category overview
Soft drinks sales through c-stores grew by 15.7% to
£3.3bn in 2023 alongside encouraging volume and unit
growth of 3.3% and 3.0% respectively.2 This comes
against a backdrop of 4.1% growth to £47.1bn for the
convenience channel in 2023 (forecast)4. In昀氀ation has
played a role in this growth, but so too has investment
in store renovation and new store formats capitalising
on growth areas including food-to-go, fresh and chilled
foods and alcohol. Such activity will help fuel expected
compound annual growth for the convenience channel of
2.7% from 2023 to 2026.3
consolidation in the ownership of roadside retail and the
expansion of new store formats.
Forecourts are fueling huge growth for the convenience
channel. Total sales (of all goods and fuel) through
forecourts grew by 2.8% to £4.6bn in 2023 (forecast).4
As we explore in the next chapter, alongside in昀氀ation,
this was driven by rapid transformation of ranges,
merchandising, and promotional strategies, the expansion
of foodservice into the sector and the rise of electric
vehicles. All of this is happening amidst growing
All this is happening amidst big shifts in the channel’s
shopper base. Older and less a昀툀uent shoppers in the C2,
D and E socioeconomic groups are leaving the channel
(share is down 4% pts6) in search of lower prices.6
Younger and more a昀툀uent families are increasing share
and driving up basket size and spend.6 As we’re about
to explore, all this is driving growth for soft drinks and
presenting new opportunities for the category.
Most key metrics are positive. Average spend per trip has
gone up from £6.56 in 2022 to £9.04 in 20235 and the
average number of items bought has risen from 2.8 to
3.5 Nearly two thirds (60%) of people now use c-stores5
but their reasons for doing so are changing. In 2022, a
昀椀fth (19.7%) of store visits were to pick up newspapers or
magazines; that fell to 15.8% in 2023.5 The latest 昀椀gures
show a rise in top up, food-to-go and treat shops.5
Changing channels
all sub-channels saw growth in convenience retail in 2023. Convenience
multiples and symbol groups led the pack with respective turnover
growth of 6.3% and 4.5% and outlet growth of 4.1% and 2%.7
Convenience market value 2023F: £47.1bn (+4.1) and outlets: 48,545 (+1.4)4
Una昀케liated
independents
Symbol
groups
Convenience
multiples
Co-operatives
Forecourts
£8.3bn
(+2.3%)
£17.6bn
(+4.5%)
£9.9bn
(+6.3%)
£6.7bn
(+2.9%)
£4.6bn
(+2.8%)
18,348
(+0.5%)
16,335
(+2.0%)
5,642
(+4.1%)
3,455
(+2.3%)
4,765
(-0.5%)
In昀氀ation is expected to
support growth in the
independent segment in
2023F as retails battle
in昀氀ation, rising costs
and value-led shoppers
seeking low prices.
The symbol sector
is forecast to retain
its share boost post
pandemic in 2023F
as store renovation
programs are rolled
out for leading groups
including Booker.
Convenience multiples
are expected to continue
to capitalise on value
credentials in 2023F,
offering shoppers every
day low prices and
boosting store numbers
through transitions.
Co-operatives are
forecast to see an up-lift
in growth in 2023 as
performance postpandemic normalises.
There are strong
growth prospects in
the expansion of its
franchise model.
Forecourt convenience
is forecast to see
robust turnover growth
in 2023F, mostly
supported by high
in昀氀ation as outlet
decline continues.
Lumina Intelligence, July 2023
2 Circana, Total Convenience, Total Soft Drinks, Value, Vol & Unit, 52WE 31/12/2023 vs. YA
3 Lumina Intelligence Convenience & Wholesale Market Report, July 2023
4 Lumina Intelligence Convenience & Wholesale Marketing Report, July 2023
5 Lumina Intelligence Convenience Tracking Programme - 52w/e 08.01.23 - 07.01.24
6 Lumina Intelligence Convenience Tracking Programme, data collected 12WE 28.05.23
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CONvENIENCE CaTEgORy OvERvIEW
