Convenience Stores & Gas Stations
Market Data & Forecast to 2013
Reference Code: WMP-103-30-13
Publication Date: October 2009
www.worldmarketintelligence.com
www.retailetrack.com
World Market Intelligence
John Carpenter House
John Carpenter Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7336 5200
Fax: +44 (0) 20 7336 5201
© World Market Intelligence. This report is a licensed product and is not to be photocopied
UK Convenience Stores & Gas Stations
TABLE OF CONTENTS
Table of Contents 2
List of Tables 4
List of Figures 5
1 Convenience Stores & Gas Stations Market Analysis 6
1.1 Overview 6
1.2 Market value 7
1.3 Channel Share of Retail Market 8
1.4 Market Segmentation by Category 9
2 UK Retail Industry Characteristics 11
2.1 Key Trends 11
2.2 Growth Drivers 11
2.3 Major Challenges 12
3 UK Convenience Stores & Gas Stations Competitive Landscape 14
3.1 Competitive Summary 14
4 Leading UK Convenience Stores & Gas Stations Companies 15
4.1 Tesco Plc 15
4.1.1 Key Information 15
4.1.2 Company Overview 15
4.2 Co-operative Group Limited 16
4.2.1 Key Information 16
4.2.2 Company Overview 16
4.3 Musgrave Group Plc 17
4.3.1 Key Information 17
UK Convenience Stores & Gas Stations Market Data & Forecast to 2013 Published October 2009
© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 2
Visit www.worldmarketintelligence.com and www.retailetrack.com for more information on our reports and premium subscription services
UK Convenience Stores & Gas Stations
4.3.2 Company Overview 17
4.4 SPAR (U.K.) LIMITED 18
4.4.1 Key Information 18
4.4.2 Company Overview 18
4.5 Costcutter Supermarkets Group Limited 19
4.5.1 Key Information 19
4.5.2 Company Overview 19
4.6 Sales and Earnings Comparison 20
4.6.1 Total Revenue 20
4.6.2 Net Income 21
5 UK Convenience Stores & Gas Stations Market Forecast 22
5.1 Forecast Statement 22
5.2 Market Value Forecast 23
5.3 Future Channel Share of Retail Market 24
5.4 Future Market Segmentation by Category 25
6 UK Macroeconomic Indicators 27
6.1 Population 27
6.2 Economy 27
6.3 Energy Costs 29
6.4 Internet Penetration 29
7 Appendix 30
7.1 Research Methodology 30
7.2 Definitions 30
7.3 About World Market Intelligence 35
UK Convenience Stores & Gas Stations Market Data & Forecast to 2013 Published October 2009
© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 3
Visit www.worldmarketintelligence.com and www.retailetrack.com for more information on our reports and premium subscription services
UK Convenience Stores & Gas Stations
LIST OF TABLES
Table 1: UK Convenience Stores & Gas Stations Market Value - US$ Billion, 2004-2008 7
Table 2: UK Convenience Stores & Gas Stations Market As Share of Total Retail Market, US$ Billion, 2008 8
Table 3: UK Convenience Stores & Gas Stations Market Segmentation by Category, US$ Billion, 2008 9
Table 4: Tesco Plc, Key Facts 15
Table 5: Co-operative Group Limited, Key Facts 16
Table 6: Musgrave Group Plc, Key Facts 17
Table 7: SPAR (U.K.) LIMITED, Key Facts 18
Table 8: Costcutter Supermarkets Group Limited, Key Facts 19
Table 9: Leading Players in UK Convenience Stores & Gas Stations, Revenue - US$ Million, 2004-2008 20
Table 10: Leading Players in UK Convenience Stores & Gas Stations, Net Income - US$ Million, 2004-2008 21
Table 11: UK Convenience Stores & Gas Stations Market Forecast - US$ Billion, 2008-2013 23
Table 12: UK Convenience Stores & Gas Stations Market As Share of Total Retail Market, US$ Billion, 2013 24
Table 13: UK Convenience Stores & Gas Stations Market Segmentation by Category, US$ Billion, 2013 25
Table 14: UK – Population Indicators, 2004-2008 27
Table 15: UK – GDP Indicators, 2004-2008 28
Table 16: UK – Exchange Rates, 2004-2008 28
Table 17: UK – Economic Indicators, 2004-2008 28
Table 18: UK – Energy Indicators, 2004-2008 29
Table 19: UK – Internet Indicators, 2004-2008 29
Table 20: Channel Definitions 31
Table 21: Category Definitions 32
UK Convenience Stores & Gas Stations Market Data & Forecast to 2013 Published October 2009
© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 4
Visit www.worldmarketintelligence.com and www.retailetrack.com for more information on our reports and premium subscription services
UK Convenience Stores & Gas Stations
LIST OF FIGURES
Figure 1: UK Convenience Stores & Gas Stations Market Value - US$ Billion, 2004-2008 7
Figure 2: UK Convenience Stores & Gas Stations Market As Share of Total Retail Market, % Share, 2008 8
Figure 3: UK Convenience Stores & Gas Stations Market Segmentation by Category, % Share, 2008 10
Figure 4: Leading Players in UK Convenience Stores & Gas Stations, Revenue - US$ Million, 2004-2008 20
Figure 5: Leading Players in UK Convenience Stores & Gas Stations, Net Income - US$ Million 2004-2008 21
Figure 6: UK Convenience Stores & Gas Stations Market Forecast - US$ Billion, 2008-2013 23
Figure 7: UK Convenience Stores & Gas Stations Market As Share of Total Retail Market, % Share, 2013 24
Figure 8: UK Convenience Stores & Gas Stations Market Segmentation by Category, % Share, 2013 26
UK Convenience Stores & Gas Stations Market Data & Forecast to 2013 Published October 2009
© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 5
Visit www.worldmarketintelligence.com and www.retailetrack.com for more information on our reports and premium subscription services
UK Convenience Stores & Gas Stations
1 Convenience Stores & Gas Stations Market Analysis
1.1 Overview
The UK retail sector contributes approximately 19.3% to the gross domestic product (GDP) (at
current prices) and plays an important role in shaping the economy. With the total sale of
US$515.7 billion in 2008, retail sector is the largest private sector employer in the UK and
generates employment for approximately 3.0 million people. Among the various categories food
retailing is a leading contributor to the total retail sales and convenience stores and neighborhood
markets account for significant amount of food retailing. Convenience stores are ideally located
near gas station or attached to the gas station and provide products such as food, tobacco and
newspapers and books. However, within convenience stores other formats have established
themselves over time such as symbols, co-operatives and multiples.
It is estimated that around 50.0% of the customers prefer shopping in convenience stores for food
and drinks. In addition, convenience stores have moved a long way from the traditional ones which
just offered food, drinks, newspapers and oil. Convenience stores have over the years introduced
fresh foods and packaged foods like breads and milk and also hot take away foods, which have
been showing good response. Given the profitability and response to this channel, convenience
sector has been subject to consolidation and new market players over the last few years.
The convenience store channel continues to attract major retail players in the market. As such
mega retailers like Tesco, Sainsbury and Mark & Spenser opened up neighborhood stores under
Express, Local and Simply Food brands respectively. In 2009, Waitrose opened up its first
convenience store in London. Strong margins in the convenience stores and additional footfall
from association with gas stations have made this channel an attractive format for retailing.
There were around 23,108 non affiliated independents which took bulk of the store outlets
numbers in 2008. However, symbol groups account for majority of the channel sales while the
number of stores at 14,340 comes second in rank. Forecourts also account for substantial retail
sales and store numbers; however, this number has been declining over the last few years. The
number of petrol station in the UK has declined and the corresponding forecourts have also come
down. Further this format has seen decline in sales due to shift in customer preference to