Convenience store shopping is on the increase: new study
New figures released today have shown that grocery sales at convenience stores are on the rise.
Data from global information and insights company Nielsen shows that consumers spent 4.3% less at the UK’s leading supermarkets in the four weeks to 29 March than in the same period a year ago, and bought 4.8% fewer units.
Nielsen found the declines were largely due to last year’s Easter build-up occurring in the corresponding period. However, value sales at smaller convenience stores in the same period were up 0.6% year-on-year, despite last year’s early Easter.
Mike Watkins, Nielsen’s UK head of retailer and business insight, explained: “Historically, traditional convenience stores were used for immediate or ‘distress’ purchasing, however, the huge investment by the major supermarkets has transformed this format.
“The likes of Tesco Express, Sainsbury’s Local and Co-operatives now offer a greater variety of food and drink which can be purchased ahead for the next few days, so basket sizes and spend per visit are increasing.
”Although grocery trips that involve buying 1-5 items account for the 54% of visits, they’re becoming less popular at the expense of 6-10 item baskets which now account for 20% of all trips – up 2.2% annually.”
Aside from location, value for money was the main reason why 43% of people polled chose where they did their “top up” grocery shopping. This compares to 21% who cited low prices.
Due to last year’s early Easter, Nielsen found that the UK’s 10 leading supermarkets spent 35% less on TV and press advertising in the four weeks ending 29 March (£23 million in total) than in the same period a year ago.
Tesco spent the most on TV and press advertising in the period (£5 million), and was narrowly ahead of Asda (£4.9 million). Iceland had the biggest year-on-year increase in spend (93%) among the top 10 supermarkets. Meanwhile, Lidl and Asda were the only other operators to increase advertising spend year-on-year with rises of 49% and 2% respectively..
Watkins added: “Overall, trading momentum continues to be slow for all supermarkets ahead of Easter, particularly with slowing food inflation. The recent round of price cuts by some supermarkets, noticeably Morrisons, to stimulate sales hasn’t yet changed the retail landscape and is likely to take months to achieve.
“Waitrose and M&S continued their strong sales performance while Asda was the pick of the top four. The Co-operative is also benefiting from the shift towards convenience shopping, with trend figures better than all the top four. Shoppers continue to economise – but not compromise – and Aldi and Lidl still seem immune from weak consumer demand, entering the Easter trading period with even stronger momentum than last year.”
