A new report from the Institute of Grocery Distribution (IGD) has been released which reveals the forecasts, challenges and opportunities ahead for convenience retailers this year.
Set against a growth forecast projecting the market to reach £56.2bn by 2030, convenience retailers face a period marked by both opportunities and headwinds.
In its latest report, the IGD has identified the five key trends driving structural change and retailer responses in the channel in 2026.
The convenience channel is expected to see a compound annual growth rate (CAGR) of 2.7% over the next five years, lagging slightly behind the wider grocery market’s 3.0%.
Declining tobacco sales will be the primary restraining factor in convenience, owing to the much greater relative scale of the category in the channel.
The IGD’s five key trends in convenience for 2026
Financial stress: Traditional categories are declining, leading to falling sales. Rising retail operating costs are accentuating this issue, creating an unsustainable challenge for some stores.
Symbol growth: Driven by B2B value, the recruitment of symbol stores is key to growth for many stakeholders in the channel and groups that are offering better value are growing faster.
Food to go: As retailers work to grow food-to-go sales, competing for share with specialists becomes inevitable, especially as they move into hotspots, such as travel hubs.
Quick commerce: While partnering with the aggregators on quick commerce is effective, retailers lose transaction value and do not wholly control the customer interaction.
Increasing, but selective, focus on price: High profile value and price-matching activity have heightened shopper perceptions that the convenience channel is expensive.
Speaking of the results, Patrick Mitchell-Fox, insight partner at IGD, said: “The UK convenience channel is facing a future of mixed fortunes, with potential offset by a range of challenges. Retailers and suppliers will need to be aware of how these impact on a store-by-store and category-by-category basis.
“Trends in demographics and shopper behaviour will continue to create opportunities for ongoing growth in the UK convenience market. However, its structural over-dependence on the declining tobacco category will create headwinds that will limit growth overall.”
For more information on the trends shaping the future of convenience, you can read a summary of the report here.
You can now secure your tickets to the Convenience Awards 2026!
Join us on 11 March in Liverpool to celebrate the entire convenience community.
See this year’s finalists and book your seat here.
No comments yet