LONDON – Last year, sales for the convenience channel in the United Kingdom reached 37 billion pounds (approximately $56 billion) and is forecast to grow as shoppers continue to shop “little and often.” In a recent article in Talking Retail, retail analyst Sarah Coleman looks at the key drivers of this growth and identifies ways the channel can ensure it is poised for success in the future.

• Focusing on shoppers’ missions – Across the convenience channel is more focus on shopper missions: To put it simply, thinking about why shoppers are using the store. Retailers can introduce solutions as simple as providing an event-themed meal deal.
• Channel blurring – As the U.K. convenience market continues to evolve, elements of small store retailing are being blended with the other fast-growth channels of online and discount. One example is a hosted e-commerce solution designed to give independent retailers the opportunity to trade online, with a minimal amount of effort on their part. Shoppers can then fill their basket online and get same day delivery from their local store. At the same time, the concept of “discountvenience” continues to evolve.
• Evolving ownership – Traditional ownership models in the channel are evolving. For instance, One Stop has launched a franchise proposition in late 2013 that allows independent retailers access to the company’s brand, marketing and distribution support, and buying power in exchange for high compliance and store standards, with close to 80 new franchised stores. This model is expected to continue growing for a variety of groups.
• Technology helping customers – The adoption of technology by convenience retailers, while mixed, is gaining traction both in-store and beyond. In-store digital shelf-edge labels and display screens allow effective communication with shoppers, as well as making life easier for store staff, while mobile apps are allowing shoppers to access store information and targeted offers.
• Locking in loyalty – Retailers are seeking to “lock in” shoppers’ loyalty, using unique offers similar to big box competitors. Building deeper insight on convenience shoppers will be key to more effectively meeting their needs in-store and also developing a longer term relationship with them that goes well beyond the store.