'UK will spend £182.7bn in grocery retail outlets by 2015'

- Published: 03 December, 2010

Latest figures released by international food and grocery analysts IGD, reveal that the UK will spend £182.7bn in grocery retail outlets by 2015 – an average annual growth of 3.9%.

According to IGD’s UK Grocery Retail Outlook: Opportunities Beyond 2010 report the UK convenience sector, currently valued at £32.1bn, will continue to outperform the grocery market and is projected to increase sales by 5.8% per year to £42.6bn in 2015.

The report, which also includes a supplier survey, found that food and drink manufacturers expressed a high level of optimism about the prospects of their businesses in the next three years, with 63% scoring 8 out of 10 or higher.

They are also aware of the need to innovate to grow. When asked how they would change their product strategy in the next three years, nearly two thirds (64%) of suppliers said that they envisage creating products and pack sizes tailored to meet different store formats or channel-specific needs.

Gavin Rothwell, IGD UK research manager, said: “Many UK retailers have announced major development plans in areas such as convenience and online – all of which are helping drive growth.
“Multi-format and multi-channel strategies are gaining traction and scale as retailers seek to reach shoppers in different ways.”

IGD chief executive Joanne Denney-Finch added: “Despite a tough trading environment, the food and grocery industry has demonstrated a resilient performance in the last 12 months. Companies have responded quickly to shifting shopper trends and adapted their business models accordingly to win the contest for value and convenience. The road ahead remains uncertain, but those businesses that keep up with the pace of change will continue to reap the rewards and prosper.”

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