SPAR UK has announced the appointment of Michael Fletcher as its new managing director.
Fletcher spent 22 years at Tesco plc, where he held numerous senior commercial roles in the UK, Ireland and Asia. He joined Co-op Retail in 2013 where he held the position of chief commercial officer before moving on to become CEO of Nisa Wholesale, a role he held until 2022.
Since leaving Nisa, Fletcher has taken on several non-executive director and board advisory roles. He is also the founder and chief executive of Sleet Brush Limited, where he focuses on designing and implementing innovative solutions to complex retail and wholesale challenges.
“Michael has outstanding credentials in commercial, retail and FMCG sectors, with experience across various trading environments,” Nick Bunker, non-executive chair, SPAR Food Distributors Ltd, said.
“His professional capabilities and high standards consistently drive excellent business performance and operational resilience. We are delighted with his appointment and look forward his lasting and positive contribution to the SPAR business.”
Fletcher added: “SPAR is a globally recognised and respected brand, and I am thrilled to join the team. I look forward to supporting the ongoing strengthening and development of the SPAR proposition in the UK.”
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”
The home secretary has on Wednesday announced a £1 billion funding boost for police across England and Wales to restore neighbourhood policing and make the streets safer.
Part of the government’s Plan for Change, this will take total funding up to £19.5bn for next year.
The majority of this funding – up to £17.4bn and an increase of up to £987 million compared to last year – will be given to police and crime commissioners, allowing them to tackle crime in their communities, rid town centres of antisocial behaviour and apprehend persistent offenders.
This equates to a cash increase of up to 6 per cent and a real terms increase of 3.5 per cent, the Home Office said.
This money will include:
£339 million more for the police core grant to help forces with general running costs and to be allocated by forces to tackle local priorities. This is significantly more than the £184 million rise announced last year.
all costs arising from changes to National Insurance Contributions (NICs), helping police to balance their budgets.
new funding of £100 million to kickstart the recruitment of 13,000 additional neighbourhood officers, community support officers and special constables, as announced by the Prime Minister earlier this month.
£65 million more for the National and International Capital City (NICC) grant for the London forces, to recognise this has not kept pace with inflation and rising demands of policing the capital
In addition to the money being given to police and crime commissioners, the Home Office is also investing an extra £140m for Counter Terrorism Policing, ensuring that they have the resources they need to deal with the threats we face and protect the public from serious harm.
“Today’s settlement provides a substantial increase in funding for policing to help deliver on this government’s Safer Streets mission. This vital funding boost will enable forces to kickstart the recruitment of neighbourhood police officers and crack down on the crimes blighting our high streets and town centres,” home secretary Yvette Cooper said.
The provisional funding settlement comes after the home secretary also announced a major package of police reform, including a new Police Performance Unit to track local performance and drive up standards, and a new National Centre of Policing to harness new technology and forensics.
Projects that sit within other national priorities are also being protected, including:
£612 million to help modernise police forces, enhancing their ability to share data, intelligence and evidence with each other and law enforcement partners. This funding will be essential in tackling the increasingly tech-savvy criminals who wreak havoc on people and businesses
£50 million for Violence Reduction Units, delivering on the government’s pledge to halve knife crime
£30 million to tackle the ongoing battle against serious organised crime through county lines routes
“We are determined to deliver for the people up and down this country and make good on our promise to reform policing, halve knife crime and tackle anti-social behaviour head on,” policing minister Dame Diana Johnson said.
“This settlement aims to do just that, providing a significant and substantial increase in funding that will allow polices forces to get a grip on criminality, to make our streets and communities safer.”
The government has on Tuesday officially recognised Capture, the software which preceded Horizon, could have created shortfalls affecting postmasters.
It has asked the Post Office to urgently review its files and evidence so the Criminal Cases Review Commission (CCRC) and the Scottish Criminal Cases Review Commission (SCCRC) can ensure no one was wrongfully convicted of a Horizon-style injustice.
Responding to the independent Kroll report into the software, the business secretary has promised to provide redress for postmasters who suffered losses as a result of Capture. The government said it will work swiftly with victims to determine its form and scope, alongside eligibility criteria, by Spring 2025.
The Capture accounting system was rolled out across some Post Office branches from 1992 before it was replaced by Horizon in 1999. The government commissioned the independent report following postmasters coming forward publicly in January indicating they had faced detriment due to the Capture system. In its report, Kroll concluded Capture could have created shortfalls.
The response comes as the government marks £500 million paid to more than 3,300 Horizon victims.
“It is thanks to testimony of postmasters that this has been brought to light and failings have been discovered,” business and trade secretary Jonathan Reynolds said.
“We must now work quickly to provide redress and justice to those who have suffered greatly after being wrongly accused. I’d like to encourage anyone who believes they have been affected by Capture to share their story with us so we can put wrongs to right once and for all.”
Post office minister Gareth Thomas added: “It’s taken a long time to reach this point which is why my priority now is to deliver justice and redress to postmasters as swiftly as possible. We will do everything we can to correct the mistakes of the past and ensure they are not repeated.
“Postmasters have raised concerns with me that their income has not kept up with inflation over the past decade. The government therefore welcomes that the Post Office is going to make a one-off payment to postmasters to increase their remuneration.”
Due to the length of time which has passed since the Capture system was in use several issues have complicated the investigation including:
Far greater timescales, meaning a greater population of the users may have sadly died
Loss or destruction of relevant evidence for example relating to shortfalls, suspensions, terminations, prosecutions, and convictions
At least 19 different operational versions of the Capture software during the period
Ambiguous number of users during this period
Unlike Horizon, it is currently uncertain how many criminal prosecutions were based on Capture evidence. These challenges also mean it will be difficult for claimants to corroborate their claims with evidence.
The Post Office has indicated it holds further information on convictions and prosecutions during the Capture period. The government has asked them to carry out their review of these records urgently and send information to the CCRC and SCCRC.
£20 million boost to postmasters
Minister Thomas has also announced the government will support the Post Office network with a further £37.5 million subsidy. It comes as the Post Office today announced a £20 million boost for postmasters to address their concerns that their income has not kept up with inflation over the past decade.
“This government is committed to strengthening the Post Office and making sure postmasters receive the income they deserve for the vital services they provide for communities across the country,” Thomas said.
“That’s why we are providing a further £37.5 million of network subsidy this financial year which is essential to stabilise the organisation. I welcome the Post Office’s one-off payment this month to postmasters, which will go a long way in easing the burden they face ahead of Christmas.”
The £20 million boost to postmaster remuneration comes as the Post Office moves quickly to deliver on its ‘New Deal for Postmasters’ following its Transformation Plan announcement on 13 November.
Both independent postmasters and Post Office’s retail partners that operate branches on its behalf will receive the top-up payment ahead of Christmas. The top-up payment will be based on both the standard fixed and variable remuneration the branch received in November.
“As we implement our ‘New Deal for Postmasters’ we are fast-tracking payments to postmasters in recognition of the challenging trading conditions they are currently experiencing. Our customers want services in the run-up to Christmas that are convenient and in-person, and that’s what our postmasters and retail partners offer. We want our postmasters to focus on what they do best, serving their communities, and not to be worried about making ends meet,” Neil Brocklehurst, Post Office acting chief executive, said.
Calum Greenhow, chief executive for the National Federation of SubPostmasters, welcomed the announcement.
“The NFSP has long campaigned for a significant increase in postmasters’ remuneration to reflect the value of the vital public services that postmasters deliver to communities. We know that right now many of our postmasters are struggling and are very worried about their ability to pay bills and provide for their families,” Greenhow said.
“This £20m as a one-off payment in December is not only well timed but very much required. We look forward to working with the government and Post Office to deliver a further £100m uplift in annual remuneration by March 2026.”
Subject to the government funding, the Post Office’s Transformation Plan provides a route to adding an additional quarter of a billion pounds annually to total postmaster remuneration by 2030 by dramatically increasing postmasters’ share of revenues.
As part of the plan, postmasters can expect up to £120m in additional remuneration by the end of the first year of the Plan, representing a 30 per cent increase in revenue share. The ambition is to double average annual branch remuneration by 2030 with the right market and regulatory landscape.
For years, convenience stores were the underdog of retail—handy, sure, but not exactly glamorous. Today, they are the unsung heroes of British life, adapting to seismic shifts in consumer behavior, economic realities, and global trends.
With the ease of flexibility and personal touch, it is safe to say some of them are even better than the nearest supermarket giant.
The recent years have proven to be a turnaround time for convenience stores.
Smashing the projected threats first from supermarkets and then from quick delivery apps, the convenience channel continues to grow at its own pace. It is projected to touch a market value of £48.6 billion by 2025.
The future is certainly bright with predictions of a compound annual growth rate (CAGR) around 2.6 per cent between 2022 and 2025. According to Statista, by 2026, the convenience market value would exceed £50 bn.
It’s not just about the numbers—it’s how people shop.
With hybrid working sticking around, people are shopping differently. The convenience store isn’t just for emergency milk runs anymore; it is more of a community hub where shoppers can find their favourite hot meal solutions, fresh produce, and even online order pickups.
Forecourt stores are also evolving. Parfetts’ new commuter-focused symbol format is a sign of things to come. Expect more niche formats tailored to specific lifestyles, whether it’s busy commuters, fitness enthusiasts, or eco-conscious shoppers.
And if the crystal ball for 2025 is accurate, convenience stores are set to shine even brighter. Let’s dive into the big trends and changes shaping the year ahead.
Shift in consumption habits
The popularity of hot and spicy flavours within the crisps, snacks and nuts category will continue in the new year, with this profile ranking as the third largest flavor within branded snacks.
As shared by Matt Collins, Sales Director at KP Snacks, taste remains the top category driver, He said, “Our portfolio taps into the demand for bold, innovative flavours with a range of products – from classic Nik Naks Nice ‘N’ Spicy to our KP Nuts Thai Chilli Coated Peanuts.
“Our McCoy’s brand, the UK’s number one ridged crisp, also caters to the demand for bold, punchy flavours, delivering exciting NPD including McCoy’s Epic Eats Flamin’ Fajita.”
The PMP format has seen significant growth in recent years and will remain popular in 2025, offering consumers great value for money and clear pricing which reassures them that they’re getting a good deal.
PMPs are driving the snack category, giving shoppers a sense of value and retailers a surefire way to boost impulse purchases. Did you know 57 per cent of impulse shoppers choose PMPs?
The £1.25 PMP format, now worth £321.9m, is proving particularly popular, growing at 4.1 per cent annually. The £1.25 PMP format is especially important for Independent and Symbol stores, representing 50 per cent of CSN sales in this channel.
Health-consciousness is now the new normal, but let’s not kid ourselves—people still want their treats. The key? Snacks that feel indulgent but don’t come with a side of guilt. Enter protein bars disguised as chocolate, air-popped crisps, and plant-based jerky.
Consumers now are more conscious than ever about how food makes them feel, with a growing demand for high-protein and vitamin-packed options.
The trend towards wellness doesn’t just stop at physical health – it’s also extending into mental health. Brands that can address how food can support overall wellbeing should be able to stand out.
According to Mintel’s 2025 Global Food and Drink Trends report, the focus will be on food and drink brands streamlining health messaging and clearly communicating the nutritional value of their products.
The report basically explores the paradoxes that influence people’s behaviors toward food.
First is the ‘fundamentally nutritious’ trend which recognises how consumers have become more knowledgeable about diet and attach value to nutrition claims. In reaction, we see more on-pack nutritional claims and advice about healthy eating and ultra-processed food from businesses and influencers.
Coinciding with this is an increased awareness of weight loss drugs. Europe is currently behind the US in terms of uptake, but the potential is clear- 46 per cent of UK under-35s say they’d be interested in using them.
Gone are the days when “healthy” meant tasteless rice cakes and sad salads. In 2025, health and indulgence will coexist beautifully. Expect a continued boom in plant-based eating, functional foods, and beverages that do more than quench thirst.
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Mental health is the next frontier for food innovation. Products designed to reduce stress, improve sleep, or boost focus are gaining popularity. Think adaptogen-packed teas, mood-enhancing snacks, and even “calm chocolates.”
Functional foods are also gaining traction. Products infused with probiotics, adaptogens, or omega-3s are no longer limited to specialist stores—they’re becoming staples in the convenience sector. Expect more “gut-friendly” yogurts, mood-boosting drinks, and brain-health snacks on shelves by 2025.
Today’s consumers are not only more health-conscious, they are becoming more aware and somewhat finicky over the source of their food. Shoppers are demanding healthier snacks, organic produce, and products that cater to specific dietary needs.
As a response, retailers are expanding their vegan ranges, with brands like Aldi’s Plant Menu and Tesco’s Wicked Kitchen leading the charge. Convenience stores must adapt by stocking high-quality plant-based options that appeal to a diverse audience.
Local sourcing is more than a trend; it’s becoming a necessity. Brexit-related challenges have made imports pricier, but consumers are embracing the shift. They’re drawn to farm-fresh eggs, artisanal cheeses, and craft beers that reduce food miles and support local producers.
But this isn’t just about patriotism. Local sourcing reduces food miles, aligns with sustainability goals, and helps retailers hedge against global supply chain issues. It’s a triple win, and we’ll see more of it in 2025.
For convenience stores, they prove to be cherry on the top. Retailers like Kaual Patel have taken the idea of local miles ahead by collaborating with a local brewery to come up with a own-branded beer line.
While Patel’s initiatives spoke volume of what can be done, highlighting local line of products is something convenience retailers can easily do to have a unique line of products.
Consumers are showing a strong preference for local and seasonal products, which are perceived as fresher and more sustainable. This shift is particularly evident in travel hubs, where 60 per cent of consumers express interest in regional delicacies, claims Lupa Foods’ UK Food Market Trend Report: 2024-2025.No wonder, businesses that emphasize local sourcing and sustainable practices are likely to see increased customer loyalty.
Food and convenience retail expert Scott Annan is a huge fan of proprietary fresh food. He has been advocating retailers to stock this line to combat competition, legislative complexities and thin margins on conventional branded products.
The Grab-and-Go Goldmine
While city-center convenience stores took a hit during the lockdowns, the resurgence of commuting has reignited the food-to-go market. Rising demand for food to go pumped growth into convenience stores last year, as the channel enjoyed a 5 per cent rise in value.
According to the Convenience Market Report 2024 by Lumina Intelligence, hybrid work patterns were fuelling the need for quick and convenient food-to-go options during commuting and work-from-home days.
Time-poor shoppers were also increasingly turning to their local convenience stores for dinner solutions, the report added, highlighting the opportunity for a diverse chilled and frozen range.
The channel saw wholesalers and symbol groups ramp up their food-to-go offer to cater for demand over the past year. The report said meal deal offers, including those stemming from loyalty programs, have helped provide convenience shoppers with affordable choices to meet their food-to-go needs.
The trend is only expected to gain momentum in the coming years.
2025 will see a growing demand for premium on-the-go meals, especially at breakfast and lunch. Bidfood’s 2025 Food & Drink Trends Guide highlights the popularity of dishes like stacked sandwiches, acai bowls and poke or energy salad bowls. These on-the-go, nutritious options are perfect for busy consumers who still want to make healthy choices.
Consumers are also looking for dishes that contain ingredients associated with gut health e.g. beans and pulses, nuts and seeds. From a cuisine perspective, Bidfood expects Cajun, Creole, soul food dishes, fondues, sauces like Piri Piri or chimichurri, kofte kebabs, pide pizzas and Greek salads to gain more momentum.
According to IGD, the UK food-to-go market is anticipated to see positive market growth over the next few years and by 2028 is expected to increase in value by almost 40 per cent on 2019 levels, emphasizing the importance for retailers to offer quick, quality meal solutions.
Retailers like Co-op, and Spar are leading the way, offering everything from grab-and-go sandwiches to premium coffee to even home-made hot Indian snacks like samosas.
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To stay competitive in 2025, convenience stores must offer transparent, health-focused options that cater to the specific dietary needs and tastes of their customers.
The “fakeaway” trend, where consumers opt for high-quality, ready-to-eat meals instead of traditional takeaways, is also gaining momentum. Premium products like gourmet pizzas are driving this trend, offering restaurant-quality experiences at home.
Drinks will be having a moment in 2025. On the hot side, premium hot chocolates with toppings like roasted marshmallows or caramel drizzle will be stealing the show. Think chocolate chai and deluxe s’mores hot chocolate—indulgent, Instagram-worthy, and perfect for the season.
Whole Foods Market’s Trends Council predicts a rise in hydrating ready-to-drink beverages in 2025.Consumers will continue to seek out hydration solutions with added benefits and enhanced flavours, like sparkling coconut water and protein-infused drinks.
Consumers are also seeking bold, exotic flavours in their hydration choices. As the lines between alcoholic and non-alcoholic beverages blur, sodas with sophisticated, muted sweetness and more complex flavours are expected to be in demand. Even nostalgic flavours, like old-school sodas and root beers, are making a comeback as more people explore low or no-alcohol options.
Irish whiskey, Guinness, Bourbon and Portuguese wine will be growing in popularity. Out of beers, lager is the most engaged drink, and out of wines, white wine, red wine and prosecco are leaders in this market and will continue to grow in popularity.
In fact, the cream liqueurs category has grown by nearly 20 per cent compared to a year ago and is set to rise in popularity in 2025. This coincides with the growing Chocolicous trend as cream liqueurs will be advantageous when creating innovative chocolate drinks and desserts.
Furthermore, Bacardi’s 2025 Bacardi Cocktail Trends report states that in 2025, cocktails will act as a conduit for connection – bringing people closer to new interests, new knowledge, new experiences.
The love for cocktails continues at home too. Retailers can take on the role of educator here, advising the shoppers on pairing and proportions. Bacardi’s top 10 global cocktails for 2025 are Mojito, Margarita, Spritz, Piña Colada, Gin & Tonic, Rum & Coke, Whisky & Coke, Dry Martini, Vodka Lemonade and Vodka Soda. All of these are easy to create at home.
Low-alcohol volume sales almost doubled in 2023and considerable growth is expected over the next few years, particularly driven by low-alcohol beer. Many beer and wine brands are lowering their alcohol content (ABV) to take advantage of the UK’s new excise duty regime, although this is poised to bring renewed challenges for wine in particular when more changes are introduced during 2025.
Buzzing and trendy
Things are also buzzing at the wholesale side. A new brand new buying group will be launched on Jan 1 2025, bringing together the members of Confex and Fairway Foodservice. Titled as The Wholesale Group, the new buying group is already being touted as “the buying group for the future” as it promises to offer logistics efficiency via central distribution as well.
In terms of footfall, the retail sector will likely see minimal change in 2025, though consumer behavior will shift toward even more price-driven decisions.
With households becoming more conscious of their spending, value and affordability will be the primary factors influencing purchasing choices. This trend may benefit discount supermarkets and those offering competitively priced private-label products.
Vegan wave is on the rise among confectionery shoppers to so make sure that the store has a line to flaunt that feature, especially when Veganuary is around.
Swizzels is increasing production to meet the growing demand for vegan sweets in time for Veganuary 2025.Popular products like Variety Bags, Drumstick Choos, and Refreshers Choos are among Swizzels’ vegan sweets anticipated to see a significant rise in popularity as consumers continue to seek plant-based options from established brands.
Ah, sustainability—the buzzword that’s no longer just a buzzword. Consumers are no longer just asking for eco-friendly options; they’re demanding them.
To keep itself ahead of its time, Mondelēz International’s Cadbury core sharing bars, manufactured in Bournville and Coolock and sold in the UK&I, will be wrapped in 80 per cent certified recycled plastic packaging.Starting from 2025, in a phased approach, the project aims to cover approximately 300 million sharing bars across the UK&I Cadbury core tablet portfolio.
Retailers should opt actively to ditch plastic, source locally, and reduce food waste.
Expect more refill stations, where shoppers bring their own containers for pasta, grains, and even cleaning products. Tesco and Sainsbury’s are already piloting these initiatives, but the big challenge will be scaling them up.
After all, convincing a nation hooked on convenience to remember their jars and bottles is no small feat. Yet it is something that only convenience stores can achieve owing to the short distance and being in vicinity.
Brace for the impact
The year 2025 will be marked by a sea of legislative changes finally coming into effect. Many of these changes directly impact convenience stores and their shoppers so it is better to have a quick revision here.
From October 2025, children will no longer be exposed to TV adverts for unhealthy food products as under the new law set out on Dec 3, advertisements of unhealthy food products on television will only be allowed past the 9pm watershed. The advertising restrictions will also include a ban on paid online unhealthy food adverts.
Also, from Oct 1, 2025, the restriction of HFSS products by volume price will come into force, affecting multibuy promotion and promotion that indicates that an item – or any part of an item – is free. The restrictions will apply to medium and large retailers (with 50 or more employees).
Another ban that will greatly impact the convenience stores is the disposable vape ban, coming into effect from June 2025, marking a major change for thousands of retailers that currently stock these products.
From June 1 2025, only chargeable and refillable will be legal to sell. Anyone selling disposable vapes from June 1 2025 could get a £200 fixed-penalty notice, followed by further enforcement action if they continue to break the law. Better to keep yourself informed and updated so as not to fall on the wrong side of the law here.
As stated by ACS chief executive James Lowman, it is important that any retailer selling vapes not only prepare themselves for the change but also communicates with customers on the implications of the ban to avoid any potential confrontations or flashpoints in store.
Moreover, from March 31, 2025, under the new recycling legislation, businesses will be required to separate their dry recycling and food waste from their general waste by law. Under the law, businesses in England of 10 employees or more producing more than 5 kg of food waste per week must arrange for its separate collection by a licensed waste carrier.
Another legislative change that will impact the sector, albeit indirectly, is new packaging extended producer responsibility (EPR) scheme, businesses will bear the cost of packaging waste collection and sorting, with heavier packaging materials like glass facing higher levies.
The new tax, set to be introduced in 2025, threatens to drive up prices for consumers and could lead to brands shifting away from using glass products.
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Amid this sea of restrictions, bans and changes, what retailers urgently need is a concrete action to tackle retail crime, a thorn in the side of the convenience sector.
The government’s proposed Crime and Policing Bill offers some hope. New measures include specific offenses for assaulting retail workers and ensuring that theft under £200 is investigated.
Multiple ministers have reiterated the same outline though concrete plans are expected to be revealed in 2025. So fingers crossed there!
The economy is the elephant in the room, and it’s stomping its way through 2025. The financial landscape for convenience stores is set to become more challenging.
The current 75 per cent discount on business rates, due to expire in April 2025, will be replaced by a 40 per cent discount, up to a maximum of £110,000. This reduction means many businesses will see their rates nearly double.
Moreover, employers' National Insurance Contributions (NICs) are slated to rise from 13.8 per cent to 15 per cent in April 2025. The threshold at which businesses start paying NICs will also decrease from £9,100 to £5,000, further increasing operational costs. The collective cost to the convenience sector next year is estimated by ACS at £397m (increase of £85m).
To top it all, From April 2025, the National Living Wage (NLW) will increase from £11.44 to £12.21 while 18-20 National Minimum Wage will rise by £1.40 per hour to £10 - the largest increase on record, marking the first step towards a single adult rate. The two are collectively expected to cost £513 million extra to the convenience sector next year, according to ACS.
For a convenience store like Tenby Stores and Post Office, everything is going to cost "about £23,000 extra a year”, as told by retailer Fiona Malone.
Happy New Year, Nevertheless
If 2024 taught us anything, it’s that the British shopper loves a good bargain. Inflation may have cooled slightly, but shoppers are still feeling the pinch. With even high-end retailers like Waitrose expanding their budget-friendly offerings, expect the private-label boom to continue.
On the flip side, premiumisation remains a countertrend. Shoppers are willing to splurge on small indulgences—think fancy chocolates
a balancing act, and convenience retailers will have to tread carefully to keep both ends of the spectrum happy.
Having a loyalty scheme on board is a great way to attract the shoppers. Lets not forget that most Brits (91 per cent) are now actively involved in loyalty programmes.
According to a survey, conducted over 1,000 UK consumers and insights from 36 GCVA member organisations, 94 per cent of those aged 66 and over are engaged in at least one scheme, alongside 81 per cent of young adults between 18 and 25. Schemes also appeal to those on both high and low incomes, with 96 per cent of those with a household income of over £75,000 actively involved in such schemes.
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Some retailers are doing it on a small scale like offering £1 for an otherwise £1.49 for a coffee.Jisp, Shopt and LocalLoyalty by ShopMate are some of the great options to choose from.
2025 is shaping up to be a transformative year for convenience stores. Yes, there are hurdles—rising costs, new regulations, and shifting consumer expectations. But there are also incredible opportunities to innovate, connect with customers, and redefine the meaning of convenience.
Retailers who embrace trends like functional foods, local sourcing, and sustainability will be able to ride the wave efficiently. Whether it’s launching their own product lines, collaborating with local producers, or doubling down on health-conscious snacks, the possibilities are endless.
And for the industry as a whole, 2025 represents a chance to redefine what it means to be “convenient” in an ever-changing world.
Season of indulgence is here. It is the season when we forget diets and calorie counting; it is the time when crisps, snacks, and nuts come into their own, much like the glittering baubles we dust off every December.
Convenience stores know this better than anyone. December transforms these everyday items into must-haves, with shoppers piling their baskets high with everything from festive-flavored crisps to honey-roasted nut mixes that pair perfectly with a glass of mulled wine. After all, everyone craves a good crunch during Christmas movies or as we gather with friends and family.
For community convenience stores, the opportunity is ripe and delicious. The festive period is the perfect time to showcase creative displays of snacks that not only catch the eye but stir the imagination.
After all, what’s Christmas without a bowl of crisps? These little bites might not make the Christmas card, but they’re undeniably part of the magic.
PepsiCo is quick to back up the crunch-love with numbers.
A spokesperson points out that salty snacks in independent and symbol stores now clock in at a hefty £631.6million, growing at a rate of +18.0 per cent. Within this, Crisps, Snacks, and Nuts dominate, accounting for a jaw-dropping 94.1 per cent of value sales in total savoury snacks.
Matt Collins, Sales Director at KP Snacks, is excited about the Christmas boom.
“Treat occasions grow in the Convenience and Impulse channel over the festive season as friends and family seek out their favourite snacks to boost enjoyment of Christmas occasions,” he says, adding, “From parties to festive movie nights, Crisps, Snacks, and Nuts are a staple of Christmas get-togethers, creating a critical opportunity for retailers to bolster sales.”
Tash Jones, Commercial Director at Fairfields Farm, sees even more reason to be cheerful.
Jones says, “The snacking market overall is – and always has been – robust. The make-up of this can change, with interest in better-for-you increasing and more flavour discovery, but fundamentally the British public will always be looking for snacks, and more often than not this will be an impulse decision in a convenience location. As ‘meal’ occasions become less rigid, the opportunities in this category are only going to grow.”
Snacks anyway rule the convenience channel.
Tayto’s spokesperson points out the hard facts: in the convenience channel, savoury snacks are a £1bn category, growing at 5.1 per cent, outpacing the major mults’ +4.5 per cent. That makes them a key driver of footfall and a golden goose for independent retailers this festive season.
Crunching Into Christmas with bestsellers
If there’s one thing that unites the nation during the holidays, it’s the sheer joy of family time spent at home (accompanied by snacking).
Christmas is all about creating those “small, happy moments” with friends and family, and snacks are the unspoken heroes of these occasions. In fact, 45 per cent of shoppers say they find happiness in these little moments, which makes your snack aisle as critical as Santa’s workshop.
A PepsiCo spokesperson puts it plainly, “As consumers come together to connect at home this Christmas, many will also be looking for larger pack sizes of their favourite savoury snacks that they can enjoy together.”
“Sharing formats are now the largest segment within the Salty Snacks Category, making up 69.4 per cent of it. Stocking a variety of formats will help cater to different need states and therefore help drive sales.”
Shoppers look for elevated snacking options to share with friends and families during holiday celebrations. This leads to them increasing their savoury snacking spend by 36 per cent over the Christmas period, presenting a huge opportunity for retailers.
A name to bank upon here is KP Snacks.
As a leading snacks manufacturer, KP Snacks offers a broad portfolio of tasty products perfectly positioned to create value and generate demand by meeting all consumer needs this Christmas.
Brand is the most important factor influencing product choice and KP Snacks delivers iconic and trusted brands including KP Nuts and Tyrrells to help drive retailer sales.
Collins says, “KP Nuts leads the segment as the UK’s number one Nut brand, worth £100.2m and growing in value +2 per cent. At nearly four times the size of the nearest branded competitor, KP Nuts holds 18 per cent share of the Nuts segment.”
With iconic flavors like Original Salted, Dry Roasted, and Honey Roast, KP Nuts prove to be quintessential pairing for everything from festive movie nights to a cheeky mulled wine. Better yet, their 375g Nut Cuddies and large Sharing bags tick both the indulgence and health-conscious boxes, as they are naturally packed with protein and fiber.
Over the festive season, shoppers are willing to spend more on higher quality CSN products to bring extra flavour and excitement to Christmas occasions. KP Snacks’ premium hand-cooked crisp brand Tyrrells is perfect for tempting shoppers to trade up.
With 92 Great Taste Awards to the brand’s name, Tyrrells is well-known for its delicious flavours and high quality. Delivering classic consumer favourites, including Mature Cheddar & Chive, Sea Salt & Cider Vinegar and Lightly Sea Salted, Tyrrells 150g Sharing packs are a great choiceas it pairs perfectly with wines and gins to add a touch of elegance to festive celebrations.
Not to forget the nation’s favourite popcorn brand Butterkist.
Collins points out, “The importance of the popcorn category shouldn’t be underestimated within the sharing occasion. Ideal for cosy family nights in spent watching films or casual family get-togethers. Butterkist delivers family favourite popcorn flavours Sweet & Salty, as well as more indulgent Toffee, perfect for those festive sharing occasions with family and friends.”
While KP Snacks is proficient in fulfilling CSN needs, plaids comes in handy for shoppers seeking savoury biscuit options.
pladis UK & Ireland’s savory biscuit range, led by Jacob’s Savours Selection, has seen double-digit growth and sales of £178m in 2023, proving that a cheese board just isn’t complete without the perfect crunch.
Aslı Özen Turhan, Chief Marketing Officer at pladis UK & Ireland, says, “Looking at Savoury Biscuits, the picture last year was similarly positive. Savoury seasonal assortments, like Jacob’s Savours Selection (+148 per cent) helped pladis increase its seasonal market share to almost a quarter (24 per cent).
“With shoppers still facing high prices across a number of aspects of everyday life, we’re expecting these patterns to continue into Christmas 2024 as shoppers bring more of their festivities in-home and look to their favourite snacking brands to make these feel special.”
Noteworthy here is that shoppers are looking to elevate in-home occasions with special snacks that are both readymade for sharing and that offer the added indulgence they seek at Christmas time. McVitie’s Victoria Chocolate Creations delivers exactly that with its mix of deluxe, fully coated white, milk and dark chocolate biscuits, wrapped up in special gifting packaging.
It was a top choice for shoppers seeking premium options last year, recording sales of £1.2 million, say Turhan.
Turhan adds, “Our Jacob’s Christmas Caddies are a case in point, and we’re working to sustain last year’s double-digit growth (+13.9 per cent) by bringing a brand-new flavour to this year’s line-up. Already a big hit – having reeled in an additional +£3.7m in sales (+43.3 per cent) – Jacob’s Crinklys Cheese & Onion will drive further appeal for this festive-favourite format.”
For those looking for a even savorier kick, consider stocking pork snacks, the fastest-growing segment. This strong demand shows just how much consumers love the unique taste of pork scratching. With over 40 per cent of consumers buying or eating pork snacks, retailers that are not stocking them are really missing out on this highly profitable sector.
Growth of more contemporary pork snacks has been even stronger, with Mr. Porky Crispy Strips up 28 per cent YoY as consumers look for a lighter bite with all the taste of a scratching.
As the category leaders (64 per cent share), Tayto are continuing to drive awareness and interest in the category through our biggest ever campaign – sponsoring TV coverage of PDC darts tournaments on Sky Sports.
Whilst sharing PMPs are the core of a strong snacks offer, independent retailers shouldn’t ignore impulse snacks, as they are a key footfall driver with over 22 million “entry-point snacks” sold in the past year. Golden Wonder plays a key role in this segment through its combination of great taste and great value with its ever-popular Tangy Toms, Spicy Bikers and Oinks and their added value of a multi-buy on-pack offer to drive sales.
There is much talk about HFSS with further restrictions coming into force in October 2025. Consumers understand that snacks are a treat, and they expect them to taste great – even the healthier ones.
Tayto has taken millions of calories and extra salt out of its portfolio - but only where it doesn’t compromise on taste with lines such as with Golden Wonder Tangy Toms and Spicy Bikers.
Snack, Sell, Celebrate Newbies
As festivities kick in, snacks are expected to fly off the shelves so make sure the store is well stocked with not only the bestsellers but also with new launches and limited-edition packs.
With enjoyment remaining the number one driver of choice for consumers when purchasing crisps, taste-led NPD and limited-edition flavours can help retailers maximise sales during this period.
To help retailers tap into the biggest snacking moment of the year, Pepsico has launched two limited-edition festive flavours across its premium Sensations brand.
Sensations Honey Glazed Roast Ham flavour hit shelves back in October, alongside the return of Sensations King Prawn & Marie Sauce flavour for another festive season. The limited-edition flavours are set to provide retailers with premium, non-HFSS SKUs that encourage consumers to trade up during this period.
Sensations King Prawn & Marie Sauce flavour was a crowd-pleaser last year, generating over £1.2m in value sales. Additionally, seafood flavours experienced an increase of 19 per cent average weekly sales within Total Savoury Snacks during the two weeks leading up to Christmas in 2023, with meaty flavours having experienced 27.8 per cent higher average weekly sales.
Walkers, Britain’s most loved crisp brand, is also helping retailers tap into the biggest snacking moment of the year with the launch of two limited-edition festive flavours across its premium Sensations brand.
Sensations celebrates Platinum Jubilee with limited-edition flavourswww.asiantrader.biz
In addition, Walkers has released festive-themed packaging across sharing bags and large multipacks of selected Walkers and Sensations year-round favourites. The activity is set to be supported by a multi-brand marketing campaign across PepsiCo’s Walkers, Walkers Sensations and Doritos brands.
Wayne Newton, Senior Marketing Director at Walkers, comments, "With new shoppers entering the category and existing customers buying more in preparation for the holiday season, Christmas is a crucial opportunity for retailers to be driving theirsavoury snacking sales. During this time, shoppers look for extra special snacking options that will elevate their celebrations, such as limited-edition flavours.
“Our festive reskins will support retailers in offering consumers’ familiar, much-loved snacking favourites with a festive look and feel, while also introducing premium seasonal flavours through our new Sensations Honey Glazed Roast Ham flavour and the return of the much-loved Sensations King Prawn & Marie Sauce flavour. These limited-edition options are set to meet the demand for bold and exciting festive treats, ensuring there's something special for everyone this Christmas."
The Walkers and Sensations festive packaging and Sensations limited-edition flavours are available now across the grocery, convenience and wholesale channels. Sensations Honey Glazed Roast Ham and King Prawn & Marie Sauce flavours are available in 150g sharing formats, with an RRP of £2.50.
PepsiCo’s multi-brand Christmas campaign will span OOH, digital and social media. With Walkers being the number one crisp brand, alongside Doritos as the category’s number one tortilla chip product range, the campaign aims to help retailers provide a wide range of crowd-pleasing snack options for everyone this Christmas.
Furthermore, the launch of Marmite Snacks has been a major success. The launch created significant press coverage given the country’s love-hate relationship with Marmite. Strong sales have followed with Marmite Crisps.
Matt Smith, Marketing Director for Tayto UK explains, “The response to Marmite snacks has been fantastic. The new range ignited consumer excitement with ‘lovers’ taking to social media about the great Marmite taste.
“We’ve seen strong Marmite Crisps sales across all channels, including PMP in the Convenience sector. The launch of Marmite Tortillas has opened up the brand to younger consumers with sales ahead of our expectations. The good news is that we have further NPD in the pipeline for 2025!”
As the category leaders in Pork Snacks (64 per cent share), Tayto are continuing to drive awareness and interest in the category through its biggest ever campaign.
Savour the Season with tips and tricks
Retailers need to be on top of their game, knowing every shift and trends among shoppers. Its the golden quarter after all, a perfect time for not only boosting sales but also in creating and elevating the store’s brand value.
Jones from Fairfields Farm points out how around Christmas, there’s a noticeable increase in demand for premium snacks, as customers are more willing to spend on quality when gathering with family and friends.
“Retailers should tap into this trend, recognising snacking as an essential part of holiday celebrations.
“Independents have the beautiful gift of flexibility – they can jump on trends quicker and use their experience to break out of a planogram to create a shopping environment for snacks, biscuits and savouries that varies from the norm and which encourages discovery. They also have the benefit of being able to merchandise differently and make use of till-adjacent space and aisle ends for high rate-of-sale items in these categories.
Exploring what works best in convenience, Jones says Freshfields Farm’s 150g sharing packs are ideal for big gatherings with family and friends during the social festive period.
Jones adds, “Bundling products through occasion-led marketing is a great way to boost in-store sales. By grouping festive items and offering incentives, retailers can encourage customers to buy more than the one item they originally came in for. Creating one-stop displays for these occasions helps customers quickly find everything they need, reducing decision time and increasing sales.
“This year, we’ve seen a strong increase in the demand for sweet and spicy combinations, alongside a comeback of the ‘swavoury’ trend, where sweet meets savoury. We also recommend that retailers stay informed by reading industry magazines, to keep up to date with the latest snacking trends, and by attending free-entry trade events where they can sample new products and see what else is out there.”
Bowing to popular demand, Freshfields Farm is bringing back Maple Glazed Ham flavour. Available in 150g sharing size with an eye-catching gold foil finish, this vegan and gluten-free option adds a premium touch to Christmas snacking.
Price marked packs (PMPs) continue to be a must-stock for independent retailers within Snacks - accounting for 79 per cent of sales. In the fight to attract and retain value-focused shoppers, PMPs remain essential in giving those shoppers confidence they are still getting great value when shopping locally.
With the decline in impulse pack sales and the continued trend to stay in rather than have a big night out, Sharing PMPs have become the dominant segment but this has slowed as many brands have moved above £1. In contrast, Golden Wonder has remained at £1 and continues to outperform sharing PMPs, showing just how important “value” when household budgets remain under pressure.
Smith from Tayto UK explains Golden Wonder’s success, “We know how important the £1 price point is to both consumers and retailers. By sticking to this key price point we have continued to deliver great tasting, great value snacks with strong retailer margins.
"A highlight is our Transform-A-Snack £1 PMPs, which are outperforming the market with 22 per cent growth, helped by the on-pack promotion in partnership with the Transformers ONE movie.”
With 64 per cent of consumers willing to switch brands for a lower price, the opportunity to profit from Golden Wonder’s £1 PMP has never been greater.
Independents are perfectly placed to cater to a variety of shopper missions for their seasonal purchases. Convenience stores are likely to be in accessible locations, making them the ideal destination for top-up shops in the run up to Christmas, as it’s easy for shoppers to pop into their local c-store to stock up on the Christmas classics in between larger weekly shops.
Turhan points out that although the core ranges should be every independent retailer’s number one priority, convenience stores are also a hotspot for impulse purchases, so it’s important to leave shelf space for novelty products and festive NPD – like McVitie’s Gingerbread Digestives – to encourage shoppers to pick up an extra treat on a whim.
“Alongside the bestsellers, novelty products and premium assortments are hugely popular among shoppers searching for last-minute gifts – a need which convenience stores are well placed to cater to thanks to their opportune locations. Ready-to-gift, fun, festive products from household-name brands work well here.”
Retailers need to stock products like McVitie’s Jaffa Pole and McVitie’s Jaffa Tree, which ranked in the top three for seasonal NPD last year. Shoppers in a rush will instantly recognise the Jaffa Cakes name and feel they can rely on these products to make for a well-received, ready-to-gift treat, Turhan adds.
As a nation, we are especially busy during the festive period, so it’s essential to make the shopping experience as seamless as possible. We recommend that clear signage is key.
Independent retailers should create a dedicated festive snacking fixture in-store and spotlight shopper-favourite brands and Christmas classics on fixtures with POS materials, like barkers, and by dedicating off-shelf features to the bestselling brands within staple festive snacking categories, like Savoury Biscuits, Turhan adds.
Munching Merry Christmas
Christmas parties and gatherings are synonymous with a bounty of snacks. Whether it's a relaxed evening at home with the family or a larger festive bash, crisps, snacks, and nuts are not just options—they're expectations.
Shoppers often pick up these munchies on impulse, which is why it's crucial for local convenience stores to have prime shelf space decked out with all the best-selling flavours. As the bells of the festive season ring louder, convenience stores have a golden opportunity to shine as the go-to destination for Christmas snacking.
Creative displays, bold signage, and tempting bundles—like crisps paired with dips or nuts alongside festive beverages—are your keys to capturing the magic. Use window posters or social media to alert customers to your festive snack promotions, drawing them into the store. Highlight snacks from local brands to create a community feel and offer unique options shoppers can’t find elsewhere.
Don’t just stock snacks; celebrate them! Dedicate an aisle or end cap to the "Snack Wonderland," filled with festive flavours, novelty treats, and sharing packs. Highlight the indulgence of premium options while keeping value-driven price-marked packs front and center. Shoppers are looking for quality that doesn’t break the bank, and convenience stores are perfectly positioned to meet that sweet spot of luxury and affordability.
So, let’s make this season a munching merry Christmas! Let the crunching commence!