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Global Convenience Market
by 55 North
BUSINESS INTELLIGENCE: IGD
Global convenience to add $43.1bn in sales in five years
IGD report reveals new global trends in convenience retailing.
The top 10 global convenience players will add $43.1bn in sales by 2026, a new report forecasts.
The report by IGD, says that the US, China and Russia are the key markets driving the growth. It forecasts that 7-Eleven, which operates, franchises and/or licenses more than 77,000 stores in 16 countries, will maintain a significant lead globally.
Charles Chan, Senior Retail Analyst and author of the report, said: “Globally, 7-Eleven continues to drive the market, followed by FamilyMart, but we will see the strongest growth from Magnit. This will mainly be driven by store expansion as demand for convenience continues to grow in Russia, fuelled by migration to big cities, a decline in traditional trade, increased price sensitivity and consumers seeking easier shopping experiences.”
In South Korea, convenience operators are coming up with new multi-buy deals, which sit alongside the usual “buy-one-get-one-free” or “buy-twoget-one-free” deals. Emart24 launched a 1+4 deal for facial masks in July, 7-Eleven has a 1+2 deal for 77 selected products, including beverages and ready-to-eat meals, and CU also had a 3+2 deal in July, covering 1,500 products. These are shortterm promotions designed to re-engage shoppers and generate excitement.
The report also highlights that seven of the top 10 convenience retailers for sales per square metre are based in Europe, with the top three from the UK – Sainsbury’s, Tesco and Co-op.
In the UK convenience sales are forecast to grow by 12.5% (+£5.5bn) by 2026, driven by a continued focus on neighbourhood locations, underpinned by higher levels of working from home and suburban living.
The report reveals that the top-up shop plays a significant role in European shopper habits – with larger basket sizes and stores that carry a wider range of goods – unlike other regions.
Chan added: “The global convenience landscape varies considerably; retailers will need to focus on investing in the right markets.
“Building flexibility into stores to meet different shopper missions for different times and days of the week will be a priority and technology and omnichannel retail will play a significant role in delivering fresher, faster and simpler shopper experiences.”
