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C-store price war predicted for 2018

2018 could see a price war in the convenience sector, according to predictions from GlobalData.

The group says that intense competition for convenience sales means that when one player moves on price, the rest will have to follow. It cautions that such a move will erode margin for convenience stores, potentially pushing independents out of the sector.

“The consolidation of symbol groups, such as the Co-op-Nisa tie-up, will precipitate a homogenisation of convenience stores, as many move towards a ‘mini-supermarket’ type model,” according to Globaldata.

“This is also driven by the shift in consumer shopping habits - younger shoppers are increasingly using convenience stores for their weekly shops, with 25.3% of 25-34 years olds using them for their main shop. Thus, convenience stores are moving to capture this spend by changing their range and operating model.”

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