Another strong year for symbol groups

Annual sales through symbol group retailers have broken the £10bn barrier for the first time after another strong year for the convenience store sector.

The latest market figures from IGD value symbol group sales at £10.4bn in the 12 months to April 2009, up 7.7% on the previous year. This was achieved despite a growth in store numbers of only 2% to 14,630. Overall, the convenience store market achieved sales of £29.1bn - an annual rise of 6.1% - from a total market of 48,751 stores (down by 1.6%). Following the pattern of recent years, this value growth once again outstripped that in the grocery sector overall, where sales are increasing by 5.1%.

Unaffiliated independents continue to decline in numbers, although remaining stores performed reasonably well, with average sales growth of more than 4%. However, store numbers in this sector fell by 5% to a new low of 21,950, due in part to ongoing recruitment by symbol groups.

Elsewhere in the convenience market, multiple operators continued to expand with an 8% increase in store numbers to 2,812 and a 12.7% increase in sales, while the Co-op sector achieved an increase in turnover of 7.9% from a largely static store base. Forecourt numbers are up for the first time in many years, with a net increase of 12 stores, possibly signalling an end to the recent pattern of site closures.

IGD senior business analyst Stewart Samuel told C-Store: "These figures demonstrate the resilience of grocery in a tough climate, and we shouldn't underestimate how well the

c-store market has performed in the past year. We are forecasting continued growth with market value reaching £39.7bn by 2014. We also expect symbol groups to continue to expand."

He added: "Against a backdrop of recession, price inflation and rising unemployment it will be tough to get sales growth, but

c-store retailers have already responded proactively by attracting spend away from foodservice operators and with an increased focus on value."