Neighbourhood retailing is seeing an increasing level of competitiveness, according to a report from retail consultancy Verdict, which labels the sector as “retailing’s newest battleground”.
Planning restrictions, over-supply in high streets and consumer demand for convenience is driving the increased competition, says the report, Verdict on Neighbourhood Retailing 1999.
The expected consolidation between players in the fragmented convenience store market may lead to future design and branding opportunities.
As a response to major chains entering the market, with formats such as Sainsbury’s Local and Tesco Metro, mergers between regional Co-operatives, or smaller local chains, are expected, says the report.
UK consumers currently spend £36bn in local stores each year.