In its latest research for the global convenience market, IGD, provider of foresight and analysis for the food and consumer goods industry, forecasts that the top 10 global convenience players will add US$43.1bn in sales by 2026, which is a CAGR* of 3.7%.
The USA, China and Russia are the key markets driving the growth, with 7-Eleven maintaining a significant lead globally.
Charles Chan, Senior Retail Analyst and author of the report, explains: “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.”
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. Unlike other regions, the top-up shop plays a significant role in European shopper habits; basket sizes are larger and stores carry a wider range of goods.
In the UK alone, 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.
Charles continues: “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.”