• New research highlights growing investment in food-to-go, innovation and value as retailers navigate rising costs and changing shopper behaviours.
• Research reveals the dual impact of cost-of-living and cost-of-business pressures with 84% saying shoppers have become more price-conscious this year and over two-thirds highlighting operating costs as their biggest challenge.
New research from convenience retailers in Ireland reveals key consumer trends and a sector balancing cautious optimism with a determination to invest in innovation, food-to-go and customer value as it prepares for the months ahead.
The findings have been released to coincide with the annual BWG Trading, Category and Innovation Showcase, which brings together retailers, suppliers and industry experts to share insights and explore the trends shaping convenience retail. The research data was compiled from almost 200 independent retail owners across BWG Foods network including SPAR, MACE and Londis stores.
More than eight in ten retailers (84%) say shoppers have become more price-conscious this year, while almost three-quarters of them (73%) report customers are opting for smaller and more frequent shopping trips. Demand for value is identified as the customer expectation that has changed most significantly during the past year by 79% of respondents. Meanwhile, convenience, freshness and quality continue to play a critical role in purchasing decisions.
Despite these challenges, retailers remain firmly focused on growth opportunities, with food-to-go emerging as the standout category for future investment. More than half of respondents (58%) rank enhancing fresh food and food-to-go performance among their top three operational priorities, while 50% plan to invest in food-to-go over the next 12 months. This establishes it as the most popular investment area identified in the research. Significantly, 82% believe fresh and food-to-go meal solutions will be the innovation trend most likely to attract customers in the year ahead.
Innovation continues to be viewed as a critical competitive differentiator. The research found that 84% of retailers regard ongoing category and product innovation as essential or very important, while 89% believe convenience retail should lead the market in product and category innovation. Almost four in five (79%) believe the sector should also set the pace in technology innovation. Beyond food-to-go, retailers identify beverage innovation (54%) and health-led ranges (51%) as significant growth opportunities.
While innovation is high on the agenda, the sector remains under pressure from cumulative and rising operating costs. This is cited by two-thirds (66%) of retailers as their biggest challenge. As a result, retailers continue to prioritise driving footfall through strong promotions and category execution, alongside initiatives aimed at improving energy efficiency and reducing operating costs.
The research also highlights the growing potential of quick commerce with almost two-thirds (63%) expecting consumer demand for these services to increase over the next year.
Jamie Tevlin, Trading Director, BWG Foods, said: “The research paints a picture of a retail sector operating in a challenging environment but one that remains highly focused on innovation and adapting to changing consumer needs. Value is clearly front of mind for shoppers, but retailers also recognise the importance of continuing to innovate, particularly in food-to-go, health-led categories and convenience solutions. These findings reinforce many of the themes from this year’s BWG Trading, Category and Innovation Showcase as we work with retailers and suppliers to identify the opportunities that will shape future growth. As we’ve seen with the research and the subsequent response to this week’s Budget, the cost of doing business is a significant concern for the retail trade with more support and solutions required to sustain the cumulative operating costs and continued growth.”
The BWG Trading, Category and Innovation Showcase took place at the Curragh Racecourse with over 1,000 independent retailers gathering from across the country along with industry experts and leading suppliers including Aryzta, Coca-Cola, Diageo, Heineken and Mondelez. The trends towards rising consumer demand for quick commerce was also a key focus with the Just Eat partnership demonstrating how new technology channels are broadening the convenience offering and expanding the customer reach for many retailers.
Also featuring at the event were many of the local Irish suppliers trading as part of SPAR Select and the recently launched Market Square Select range which reflects BWG Foods’ ongoing investment in high-quality own-brand innovation along with supporting Irish enterprise. The suppliers within these new ranges include Wexford Home Preserves, Meath’s Newgrange Gold, Galway’s Foods of Athenry, Cork’s Healy’s Honey and Waterford’s Coffee House Lane.
One of the other main trends covered at the event has been the growth of sports nutrition products, which has been driven by Leydens Sports Nutrition (LSN), BWG Foods leading sports nutrition wholesaler, servicing the increased demand for energy drinks, protein powders and healthy snacking products.
