NEWS FEATURE
10 ASIAN TRADER 21 FEBRUARY 2025
espite being regarded as the
community’s lifeline, the
convenience retail sector is sadly
facing a consistent decline in sales.
Yet, as Asian Trader reports, the tide can still be
turned if retailers embrace smarter strategies,
leverage technology, and remain attuned to
shifting consumer demands.
Recent data from Kantar paints a stark
picture. Over the past year, symbols, inde-
pendents, and even the Co-op have seen their
market share erode, with year-on-year sales
plummeting by 5.8 per cent by January 2024.
This stands in sharp contrast to the
steady or rising trends observed in
supermarkets like Tesco and Aldi.
The findings are corroborated
by Talysis and TWC, both special-
ists in the UK convenience market.
Talysis’ CD:UK, an analysis
based on over 13,000 stores,
including 1,600 forecourts, shows
that over the last twelve months,
symbols and independents’
moving annual total (MAT) has slipped by 0.61
per cent.
Ed Roberts, MD of Talysis Ltd, told Asian
Trader, “The downward trend is even more
noticeable in the latest four weeks (-2.42 per
cent) and 12 weeks (-3.12 per cent), which
indicates the decline has started to ‘set in’
more recently.”
The Christmas period, traditionally a boon
for retailers, was “particularly disappointing”
for the convenience sector, Roberts adds.
TWC’s SmartView Conveni-
ence data, based on 5000+
independent convenience stores
and reflective of the 30,000
independent c-stores in Great
Britain, echoes similar sentiment.
It also shows a “4.4 per cent” YoY
decline in 52-week MAT perfor-
mance to 29 December 2024.
Diferent data reports, analysis
and methodologies, yet they all
are revealing the same picture,
that symbols and independents are losing
ground.
What is happening?
To understand what is going on, Asian Trader
Amid reports of declining sales, mindful
strategies could reignite the convenience
sector’s spark, finds Pooja Shrivastava
likely to see a fall in overall performance, he
adds.
In 2024, sales of tobacco (value) were down
by -4.66 per cent (value) and 9.21 per cent
(volume) year on year, representing a
whopping “£300 million of revenue lost” to
the sector.
Roberts adds, “The two biggest categories
(tobacco and alcohol), which combined
account for just over half of convenience value
sales, are showing a decline – it’s no wonder
that sales and market share in this sector are
falling!”
In addition, what is emerging as a problem-
atic aspect (surprisingly) is the sheer volume
of SKUs in convenience stores.
“In the past twelve months, Talysis has
seen over 6,000 diferent soft drinks SKUs
and 8,000 alcohol SKUs selling in CD:UK. It’s
fair to say that stocking and display decisions
for symbols and independents can be a game
changer,” Roberts adds.
Pete Patel, a seasoned
retailer with 10 stores under
the Costcutter and Bargain
Booze banners, acknowl-
edges the struggles facing
some independent retailers,
though he maintains that his
stores are able to buck the
trend through timely investments.
“There are lots of factors, but the main one
I believe is competition, not only from
supermarkets but also from online and quick
commerce. In fact, it is the latter that is
becoming more and more aggressive and has
made things quite difcult and tricky,” Patel
explained.
Patel also senses a feeling of uncertainty
among c-store shoppers.
“People are tightening up. So, instead of
shopping locally, they are going to the
discounters more often,” he notes.
Symbol groups and wholesalers are bound
to feel the impact of this downturn.
Guy Swindell from wholesale group
Convenience in crisis:
Can retailers turn the tide?
got in touch with leading retailers,
symbol groups and retail experts. It
turns out that the decline is multifac-
eted, driven by both internal and
external factors.
Tom Fender and Sarah Coleman
from TWC attribute a significant part of
the decline to the ongoing slump in tobacco
sales over the past couple of years.
“There is a long-term decline in tobacco –
minus nine per cent value year on year,”
Fender and Coleman explain. “This could also
have a significant negative impact on retailers’
cash flows.”
Alcohol sales have also taken a
hit in the convenience channel
with beer, wine, and spirits all
showing continued decline.
Surprisingly and contrary to
market trends, sales of low and no
alcohol lines also continue to
remain low in independent
convenience stores.
“This is a missed opportunity,”
says Fender.
Further exacerbating the convenience
channel’s challenges are supermarkets and
discounters’ loyalty cards and data-led
strategies.
“Supermarkets are cranking up promo-
tions,” Fender points out. “There has been a
month-on-month increase in promotions for
16 consecutive months, with an average
promotion discount of 22 per cent.”
Discounters like Aldi are becoming the new
“community retailers” with their
tight ranges, better prices and
relatively easy-to-shop experience
as compared to “40000 square
feet supermarkets”.
Roberts from Talysis echoes
these concerns, particularly the
slump in tobacco sales.
“If we remove tobacco from the
equation, total convenience value
is actually up by +1.55 per cent
MAT and +0.48 per cent in the
latest four weeks,” he explains, showing just
how vital the category has been to overall
performance.
Accounting for 34 per cent of total conveni-
ence sales, any drop in tobacco is more than
Pete Patel
Ed Roberts
Tom Fender