Why Sainsbury’s is betting on convenience with new store format

Grocery retailers like Sainsbury’s and Marks & Spencer are hoping to tap into the growth of convenience culture as they attempt to claim a greater share of spend among urban shoppers.

The appeal of sandwiches – and other food-to-go items – among the UK’s population of office workers is being tested out by a new Sainsbury’s store format.

The group has opened its first On the Go store at Mansion House in the City of London, with plans to open a further nine branches in London, Bristol, Edinburgh and Glasgow.

New convenience store formats could become a key battleground for retailers as they compete for market share. The traditional ‘Big Four’ supermarkets have been losing share as new players – essentially discounters like Aldi and Lidl – increase sales. If successful, innovations like On the Go could be the start of a fight back.

The latest report from GlobalData forecasts a UK food and grocery sector worth £174.5bn by 2024, representing 15% growth on 2019 figures.

But it cautions that while Tesco, Sainsbury’s, Asda and Morrisons will see growth of 12.6%, they will be outperformed by discounters boasting growth of 25% and pureplay online rivals, which are expected to grow by more than 55%.

Source: Marketing Week