The UK convenience store market is poised to grow by an additional 9% by 2027, according to the latest data from Colliers.
In the last decade, the number of convenience stores in the UK has risen by 71%, from 5,015 stores in 2013 to 8,556 in 2024, with Colliers projecting an additional 260-300 stores will open by 2027.
It is anticipated that Tesco will open circa 70 new stores each year for the next three years, with Waitrose seeking a further circa 100 stores over the next five years.
Asda has tabled plans to open more than 50 standalone Express stores each year for the next three years and Sainsbury’s intends to open 20-30 new Local/Neighbourhood sites each year, over the course of the next three years.
Market share is currently led by Co-op (38%), followed by Tesco Express (24%) and Morrisons’ M Local (13.5%).
Matthew Hobbs, head of retail lease advisory at Colliers, said: “With this level of demand for new convenience food stores, we expect to see continued rental growth in the sector over the next few years. In some key locations, particularly new housing developments, rents have doubled from where they were two to three years ago.
“A large number of leases on the first-generation of convenience stores are now expiring, leaving landlords and occupiers in the position of having to negotiate terms for renewal. It is critical that both parties are represented by specialists who are in possession of the latest open market transactions. Otherwise, they risk selling themselves short in this highly dynamic sector.”
