UK convenience store market set to grow 9% by 2027

The number of convenience stores in the UK is expected to rise by 9% by 2027 as the market expands. Over the past decade, the number of convenience stores in the UK has increased by 71%, rising from 5,015 stores in 2013 to 8,556 in 2024, according to Colliers. The market has experienced growth across the board, with all major grocers expanding their store presence in recent years. Co-op currently leads the market with a 38% share, followed by Tesco Express at 24% and Morrisons’ M Local at 13.5%. Tesco aims to open around 70 new stores annually over the next three years, while Waitrose announced in August that it is targeting approximately 100 additional stores over five years. Asda plans to launch more than 50 stand-alone Express stores each year for the next three years, including a store leased from the Arch Company in Salford that is planned to open by spring 2025. Sainsbury’s also intends to open 20 to 30 new Local/Neighbourhood sites annually over the same period. In August, the retailer acquired 10 Homebase leasehold stores from the DIY chain’s owner, HHGL, for conversion into supermarkets with a projected investment of around £130m. The first store is expected to open next summer, and Sainsbury’s expects to convert all of the sites by the end of 2025. Totalling the plans announced by all grocers, 260 to 300 new convenience stores are expected to be opened 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.” Photo © Sainsbury’s