McColl’s boss Jonathan Miller’s admission that the retailer would be interested in acquiring Tesco-owned One Stop brought the subject of c-store consolidation to the fore.

Analysts believe Tesco may be forced to offload hundreds of convenience shops by the Competition and Markets Authority in order to complete its £3.7bn acquisition of Booker.

Retailers such as McColl’s and the Co-op are already opening stores at a pace and snapping up sites owned by independent retailers, but Tesco’s merger with Booker could spark even more consolidation.

And research from IGD and William Reed reveals just how ripe the convenience market is for such amalgamation:

      Number of stores 2016Number of stores 2017Percentage share of stores 2017Percentage change in store numbers 2016 – April 2017

Unaffiliated independents

19,054

18,841

37.7

-1.1

Symbol groups

15,139

15,491

31

2.3

Convenience forecourts

8,478

8,434

16.9

-0.5

Convenience multiples

4,136

4,280

8.6

3.5

Co-operatives

2,850

2,872

5.8

0.8

Total convenience

49,657

49,918

100

0.5

Over the 12 months to March 31, the number of convenience stores operating in the UK increased 0.5% to 49,918.

However, just 8.6% of those shops were run by the multiples, such as Tesco, Sainsbury’s and McColl’s, emphasisng the scope for expansion.

Symbol groups such as Nisa, Spar, Costcutter and the Booker-owned Londis, Budgens and Premier, account for 15,491 stores — almost a third of the c-store market.

But the largest slice of the pie is taken up by unaffiliated independent retailers, who operated 18,841 shops at March 31, although that represented a 1.1% drop year-on-year.

It is that group who will be prime acquisition targets for McColl’s, while names such as Nisa, Spar, Costcutter and Booker will be attempting to convince such indies that they can better compete in the market by joining their symbol groups.

Whether or not Tesco is forced to offload c-stores by the Competition and Markets Authority, Miller remains focused on adding to the retailer’s 1,300-strong estate, and drive consolidation within the convenience market.