The future of shopper marketing: Shopping for convenience
Multinational retailers, from Tesco to Carrefour, have invested in smaller store formats, as demand for convenience shopping grows, based on ease, economy and shopper experience.
People in the developed world are buying less, but shopping more, often in smaller stores. The evidence is clear: convenience shopping is on the up.
In the UK, for example, the convenience food retail market is growing at twice the rate of the wider market and accounts for 20% of grocery spend. IGD estimates the sector will be worth £46.2 billion by 2018, an increase of around 30% on 2013. Average basket size in the UK is also decreasing; the average is only £6.04 comprising three items but the number of trips made has doubled in 10 years.
This is a global phenomenon. Ever since shopping began, average store size has been increasing. After plateauing in the 1990s, research by Kantar found it began to decrease, with multinational retailers including Tesco, Carrefour and Walmart investing in small-format stores.