UK convenience market poised for further growth
The UK convenience market is poised for further growth, with store numbers set to grow an additional 9% by 2027, according to a new report by Colliers.
The international real estate adviser found that – over the last decade – the number of convenience stores in the UK has risen from 5,015 in 2013 to 8,556 in 2024, marking an increase of 71%.
Colliers’ report found that growth can be seen across the sector, with all major grocers increasing their exposure to convenience stores over recent years. Co-op currently leads the convenience sector in terms of market share, holding 38%, followed by Tesco Express at 24% and Morrisons’ M Local at 13.5%.
Colliers said that the forecasted growth of 9% can be attributed to ambitious expansion plans announced by all grocers. Tesco has projected to open around 70 new stores each year for the next three years, whilst Waitrose is seeking around 100 more stores over the next five years. Meanwhile, Asda is looking to open over 50 standalone Express stores each year for the next three years, whilst Sainsbury’s plans to open between 20 and 30 new Local/Neighbourhood sites each year, also over the course of three years.
Adding together the plans announced by all grocers, Colliers projects a growth of 260 – 300 new convenience stores by 2027.
Matthew Hobbs, head of retail lease advisory at Colliers, said: “With this level of demand for new convenience food stores, we expect to see continued rental growth in the sector over the next few years. In some key locations, particularly new housing developments, rents have doubled from where they were two to three years ago”.
“A large number of leases on the first-generation of convenience stores are now expiring, leaving landlords and occupiers in the position of having to negotiate terms for renewal. It is critical that both parties are represented by specialists who are in possession of the latest open market transactions. Otherwise, they risk selling themselves short in this highly dynamic sector”.