Three tips on what convenience shoppers want

This year has been a rollercoaster ride for shoppers – they are lacking confidence and many expect to become worse off in the future. But IGD predicts that the UK convenience sector will be worth £42bn by 2016 – so, how can convenience stores differentiate themselves to tap into that growth?

When I spoke at IGD's convenience retailing 2012 conference, I said that shoppers have a new rationing instinct - many are economising by taking products out of their basket or even skipping meals. At the same time, shopper loyalty is eroding, driven by increased price transparency.

The grocery shopping landscape has changed significantly and irrevocably. People are shopping little and often and are increasingly tiding themselves over to pay day with a smaller shop. Many shoppers are visiting convenience stores every couple of days, often because they see it as a way to save money. They are also increasingly using convenience stores to complement a main online shopping trip.

So, how can convenience stores best meet shoppers’ needs and differentiate themselves both from each other and alternative retail channels? Tim offers some suggestions based on our ShopperVista research:

	Become shoppers’ guardian of value: make it clear how you can help shoppers save money. This is not just about price, but becoming a guardian for the shopper and showing how you can help them save money across their entire grocery shop. Clearer promotions are important, while digital innovations can also help, for instance, with mobile coupons. Developing a credible private label range that stands out is also important
	Become shoppers’ home of localness: convenience stores have potential to be the best shop windows for locally sourced foods and to help shoppers support their local community. This also ties in with shoppers’ increased demand for freshness. Already, the sector has made good progress in this area, but larger format stores are also improving their range of local products
	Become shoppers’ trusted friends: shoppers value friendly, local services and this is a chance for convenience stores to deliver something new. Parcel pick up, home delivery and click & collect services all offer new opportunities for growth Source: IGD (http://goo.gl/thfxG)