Food and grocery spending in UK convenience stores is projected to reach £43.2bn by 2028, with this growth to outpace the hypermarkets, supermarkets and discounters channel, according to GlobalData. 

Between 2023 and 2024, the traditional ‘big four’ grocers – Tesco, Sainsbury’s, Asda, and Morrisons – collectively added 800 new convenience stores to their portfolios, with Asda and Morrisons leading this growth through acquisitions. 

GlobalData said that while UK supermarkets successfully focused on price in large format stores to appeal to consumers during the cost-of-living crisis, they should now shift their focus on agile pricing to convenience locations.

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Last month, Sainsbury’s became the first UK grocer to extend its Aldi Price Match scheme into convenience stores, while Tesco cut the prices of more than 200 own-brand and branded products in its Express stores.

GlobalData retail analyst Aliyah Siddika said: “This replication of price focus from larger format stores to grocers’ expanding their convenience offer will encourage consumers to impulse buy due to increased affordability.

“When offering deeper price cuts in convenience formats, grocers must target price promotions towards items that consumers are more inclined to purchase during the workweek. Such as food-to-go ranges, ready meals, quick dinners, and treats to capture spending from commuters.

“By targeting these specific categories, grocers can avoid cannibalizing sales from larger stores and ensure that customers still have a reason to visit bigger grocery stores for weekly shopping journeys.”