The convenience grocery market is set to balloon as consumers shop more frequently and collect online orders in store.
UK convenience stores’ sales are forecast to reach £44bn by 2017, up 29% from the current value of £34bn, according to IGD’s ShopperVista research.
The average annual growth rate for the convenience sector is expected to be 5.1% by 2017.
The market has become highly competitive as the big four expand their small-store businesses.
Customers are shopping little and often – 49% shop three or more times a week, against 39% in 2009.
The IGD revealed 72% of shoppers said they would use stores to pick up parcels.
IGD chief executive Joanne Denney-Finch said: “The sector is more competitive than ever, with operators raising their game to attract more customers.
“This includes stronger promotions, a greater choice of goods and value for money.”