UK Staycations: The Opportunity for Convenience Stores

With the Costa Del dreams of many being crushed this week following the announcement of a 14-day quarantine for holidaymakers returning from Spain, attentions have turned to the currently prosperous UK staycation market.

Week commencing 27 July, Lumina Intelligence Channel Pulse data reveals that 25% of UK adults are planning to go on holiday in the UK this summer.  Tourism is the mainstay of economies for many UK towns and cities, so it is good news that so many are feeling confident enough to leave their homes and travel.  More encouraging still – for the grocery sector – is that 85% of visitors are planning on doing some self-catering, with over a third (36%) not planning on eating out at all, and only self-catering.

During this holiday in the UK, are you planning on self-catering (i.e. cooking your own food) or going out for food (e.g. to a pub or restaurant)?

I'm planning on doing some self-catering, also going out for food sometimes 49%
I'm planning on only self-catering, and not going out to eat at all 36%
I'm planning on only going out for food, and doing no self-catering 15%

For the convenience market, UK staycations represent an opportunity to benefit from aspirational and relaxed holidaymakers.  The convenience market is forecast to grow 8% in 2020, off the back of increased volumes as a result of the coronavirus pandemic (Lumina Intelligence Convenience Market Report, 2020).  Sustained boosted footfall throughout the summer months for prime-located stores is likely to bolster this.

A retailer ahead of the game is Nisa, which carried out a major review for stores on Haven Holiday parks, in response to the coronavirus pandemic.  Operating 37 parks across the UK, the company has increased its range by 14% to cater for holidaymakers, including adding more meal solutions, chilled lines and fresh produce alongside running more promotions.

For the symbol, multiple and Co-op market spanning 15,560, 5,030 and 3,110 outlets, respectively (Lumina Intelligence GDI Report, 2020), retailers in prime tourist locations should be primed for added visitors with anxieties about shopping in larger supermarkets or eating out.  Holidaymakers can be expected to purchase more lucrative categories from convenience stores and so larger ranges of meal solutions including fresh and chilled should be considered, as well as driving spend through promotions and premium options.

Consumers are ready for their holiday which will provide a welcome boost to rurally located convenience stores. Now all we need is good weather.

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