Convenience store evolution in London

We're seeing a new wave of convenience store format under way in London. Here we highlight some of the broader focus areas within this as we look as to how the market could evolve.

1. Making more of better food-to-go

Whether it be Co-op's new micro retro counters, Sainsbury's new look and feel for its Local convenience formats or Whole Foods Market's new concept, unveiled last month in Angel, there's a lot under way here. The calibre and breadth of ranges has expanded rapidly over the past few years - thinking more broadly about using meal deal mechanics as an opportunity rather than a hindrance (enabled in no small part by the addition of premium meal tiers) has played an important role in this. But there's a lot of thinking that has gone into shaping new ranges for these formats, signalling an intent to capture a larger share of the food-to-go market.

2. Focusing on hot food-to-go as a beacon

And one area where ranges continue to evolve lies in the evolution of the hot food offer. Not everyone is embracing this opportunity - in fact some are taking a step back from this, or at least managing offers very carefully. But we've been impressed with the focus of a range of operators in visits over recent weeks and the continuing aspirations around targeting more of this market.

3. Different ways to deliver meal for tonight solutions

Answering the question of what's for dinner tonight has long been a core element of UK and London convenience stores. And it remains so, with some good range development across the broader estate coming to the fore in this environment. The Co-op Served range for example offers some excellent innovation here - the framework to offer regularly rotating ranges, based on a specific cuisine, strikes us as a great way through which to offer something new to regular customers. It inevitably adds complexity. But it does drive significant newness and shopper interest.

4. Varying approaches to the breadth and depth of range that stores need to offer

Food-for-now and food-for-later are core missions within convenience, but there is clearly a role for convenience stores beyond this. The difficult part for any retailer is then deciding the extent of what this should be, bearing in mind the negative impact on ease of shop that range proliferation can bring. There's not one single correct solution, but it does come down to understand the existing and potential demographic - customer data can play a critical support role here. A fundamental principle, in our view, is not trying to be all things to all people, as there simply isn't space.

5. Range tweaks or indications of a broader repositioning?

This is a key question here, and only time will tell the answer. But we are watching closely for the impact of six new convenience oriented Whole Foods Market stores opening in London, and the inevitable ripple effect this will have across the market, given the high regard in which Whole Foods Market is held. We've only really scratched the surface here of what's going on more broadly, with openings such as Corner Shop in Temple and Storr'd in Camden also seeking to cement their own influence on the market. But it feels that this is the perfect time for anyone looking to grow in the convenience channel to reacquaint themselves with the landscape. Get in touch for details of how we can shape a London convenience safari around your specific needs, or simply book a place on our next open London convenience safari on June 16 here.

Core principles for success from our global convenience programme

• Make it easy to complete core missions, and to see how to complete core missions.

Low level fixturing here has become increasingly integral for many successful global formats, as well as a willingness to look at differentiated, bespoke, convenience store fixturing.

• Put your fresh foot forward

The traditional caution around fresh ranges in convenience stores helps keep wastage low, but it also hinders sales growth. And crucially restricts the number of missions that a convenience store is competing for. The new Whole Foods Market contrasts with this approach, but key within this is its goal to differentiate rather than just replicate the offers of larger supermarkets. this approach isn't right for everyone, but for differentiated retailers it will create and deliver more reasons to visit.

• Build for good times, bad times and different times

Or rather,  consider what messages your units are sending out at off peak times as well as during busy trading periods. Ensuring stores have a consistent plan of how to merchandise for off peak times is our core recommendation here. There's also a consideration in which display units fit this need best. And within the wider vision of the store, retaining flexibility will be key: times and consumers change, retailers able to flex to meet these changing requirements will inevitably be better placed. However, for most, clarity around food-to-go and food-for-later missions, supported by fresh, will form the heart of the formula for success.

Get in touch for more details of how we can support your convenience format evolution, or join our London convenience safari on June 16 by booking here.