Nisa retailer Prem Uthayakumaran has made significant donations totalling £3,500 to two local community organisations through Nisa’s Making a Difference Locally (MADL) charity.
The funds will provide essential support to groups within the communities that his stores serve, helping them continue their invaluable work.
The first of these generous donations was a £1,000 contribution from Broxbourne Service Station in Hertfordshire, directed to the Lea Valley Karate Academy. The funds will enable the academy to purchase much-needed equipment, ensuring that young people and adults in the local area have access to high-quality resources as they develop their skills in martial arts.
Additionally, a £2,500 donation was made by Eastfield and Cross Road Service Stations to the Mansfield Town Ability Counts Football Club. The club, which provides opportunities for individuals with disabilities to participate in football, will use the funds to support their programs, enhancing the experience for current players and making it possible for even more participants to join.
In July 2024, Prem donated £1,000 to Voice of the Vale – a group of young performers at Nottingham Trent University. This followed further self-donations from Prem to Broxbourne Organisation for Disabled and to Mansfield Under 12s Football Club in 2023.
Prem Uthayakumaran said: “Supporting the communities around my stores has always been important to me, and through Nisa’s Making a Difference Locally charity, we’re able to make a real, tangible difference. The Lea Valley Karate Academy and Mansfield Town Ability Counts Football Club both play vital roles in their respective communities, and I’m thrilled to be able to contribute to their success.”
Nisa’s Making a Difference Locally charity enables retailers to donate to local good causes through the sale of Co-op own brand products in their stores. A percentage of sales from these products goes into a MADL fund, which retailers can then use to make donations to charities, schools, sports clubs, and other community groups.Kate Carroll, Head of Charity at Nisa, said, “We are delighted to see retailers like Prem using their MADL funds to support such worthwhile local causes. Both the Lea Valley Karate Academy and Mansfield Town Ability Counts Football Club provide vital services to their communities, and donations like these enable them to continue their important work. At Nisa, we are incredibly proud of our retailers’ commitment to making a difference locally.”
Nisa’s Making a Difference Locally charity has been helping retailers like Prem Uthayakumaran give back to their communities for over 15 years, and with each donation, they help foster stronger, more Connected local areas.
The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.
The latest Budget delivered a tough blow to the retail sector, exacerbating existing financial pressures. Retailers, who already shoulder a significant portion of business rates and rely heavily on a large workforce, face increased costs from rising employers’ National Insurance Contributions.
“Higher costs will also eat into available funds for future pay rises, benefits or pension contributions – hitting retailers’ cashflow in the short term and employees’ remuneration in the longer term,” Baker said.
“Retailers must get creative to manage their margins and attract footfall and spend, plus think outside the box to incentivise employees if they’re to hold onto talented staff.”
On the brighter side, falling inflation and lower interest rates could ease operational costs and restore consumer confidence, potentially driving retail spending upward.
High street resurgence
Consumers’ shopping habits are evolving, with a hybrid approach blending online and in-store purchases. According to RSM UK’s Consumer Outlook, 46 per cent of consumers prefer in-store shopping for weekly purchases, compared to 29 per cent for online, but the preference shifts to 47 per cent for online shopping for monthly buys and to 29 per cent for in-store. The most important in-store aspect for consumers was ease of finding products (59%), versus convenience (37%) for online.
“Tactile shopping experiences remain an integral part of the purchase journey for shoppers, so retailers need to prioritise convenience and the opportunity for discovery to bring consumers back to the high street,” Baker noted.
The government’s initiative to auction empty shops is expected to make brick-and-mortar stores more accessible to smaller, independent retailers, further boosting high street revival, she added.
A security guard stands in the doorway of a store in the Oxford Street retail area on December 13, 2024 in London, EnglandPhoto by Leon Neal/Getty Images
Meanwhile, retail crime, exacerbated by cost-of-living pressures, remains a significant concern, with shoplifting incidents reaching record highs. From organised social media-driven thefts to fraudulent delivery claims, the methods are becoming increasingly sophisticated.
“Crime has a knock-on effect on both margins and staff morale, so while the government is cracking down on retail crime, retailers also have a part to play by investing in data to prevent and detect theft,” Baker said.
“Data is extremely powerful in minimising losses and improving the overall operational efficiency of the business.”
AI as a game-changer
Artificial intelligence is emerging as a transformative force for the retail sector. From personalised product recommendations and inventory optimisation to immersive augmented reality experiences, AI is reshaping the shopping landscape.
“AI will undoubtedly become even more sophisticated over time, creating immersive and interactive experiences that bridge the gap between online and in-store. Emerging trends include hyper-personalisation throughout the entire shopping journey, autonomous stores and checkouts, and enhanced augmented reality experiences to “try” products before buying,” she said, adding that AI will be a “transformative investment” that determines the long-term viability of retail businesses.
The Amazon Fresh store in Ealing, LondonPhoto: Amazon
As financial pressures ease, sustainability is climbing up the consumer agenda. RSM’s Consumer Outlook found 46 per cent would pay more for products that are sustainably sourced, up from 28 per cent last year; while 44 per cent would pay more for products with environmentally friendly packaging, compared to 36 per cent last year.
“However, ESG concerns vary depending on age and income, holding greater importance among high earners and millennials. With financial pressures expected to continue easing next year, we anticipate a renewal of sustainability and environmentally conscious spending habits,” Baker noted.
“Retailers ought to tap into this by understanding the preferences of different demographics and most importantly, their target market.”
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.