The convenience store industry in the UK is on the verge of significant transformation, with Co-op unveiling plans to open 75 new stores in 2025. This expansion aims to strengthen its footprint and appeal to the evolving needs of local communities. For convenience store owners, this development presents challenges and opportunities to adapt, grow, and stay competitive in a rapidly changing market.
Let’s dive into the details of Co-op’s plans and explore how to leverage these shifts to boost your business.
Co-op’s Ambitious Expansion Plans for 2025
Co-op’s 2025 expansion strategy focuses on meeting the growing demand for convenient, accessible retail options in both urban and rural areas. The retailer plans to open 75 new locations by the end of the year, with additional new stores set for future years. These will include both company-owned and franchise-operated outlets.
Matt Hood, the Co-op’s Managing Director, has expressed a clear objective: “We want everyone to have easy and convenient access to a Co-op store, wherever they live.” By the end of 2025, Co-op aims to have a total of 120 new stores open, continuing its expansion well into the future.
Key Expansion Points:
- Initial Launch: The first stores will open in early 2025 in Salford and Newcastle-upon-Tyne.
- Franchise Focus: Around 50 of the new stores will be franchises, presenting opportunities for entrepreneurs and existing retailers.
- Customer-Centric Locations: Co-op’s new stores will be placed in areas with high footfall, including healthcare hubs, university campuses, and petrol stations.
Refurbishments: A Fresh Look for 80 Stores
In addition to opening new locations, Co-op is set to give 80 existing stores a major facelift. These refurbishments aim to enhance design and functionality while creating future-proof spaces tailored to local communities.
Some of the standout locations scheduled for a relaunch in early 2025 include:
- Brighton
- Exeter
- Bristol
- Cambridgeshire
- Hampshire
- Hereford
- Clapham
New Locations, New Opportunities
For convenience store owners, the Co-op expansion represents both a challenge and an opportunity. While competition may intensify, it also means a growing demand for convenience and a more extensive customer base in your area.
The expansion is particularly beneficial for communities that may have previously lacked easy access to retail options. Co-op’s focus on accessibility means new stores will be strategically placed to serve high-footfall areas, such as university campuses, petrol stations, and even healthcare locations. This is part of Co-op’s plan to cater to diverse customer needs, from daily essentials to parcel collection and payment services.
Co-op’s commitment to serving both urban and rural areas ensures that there will be opportunities for store owners to tap into new customer demographics. Whether you’re located near one of the new Co-op stores or further away, there’s potential for you to adjust your offerings and attract a new type of shopper.
What This Means for Convenience Store Owners
Co-op’s planned expansion has far-reaching implications for convenience store owners across the UK. Here are the key takeaways:
1. Increased Competition
The UK convenience store market is worth over £40 billion, and competition in this sector has intensified with the rise of quick commerce and larger chains like Co-op.
2. Opportunities for Differentiation
While the competition may increase, there’s also room to stand out. For instance, Sainsbury’s Local chain has seen steady growth by positioning itself as a community-oriented convenience store, offering local produce and unique in-store experiences. You can take a similar approach by catering to your local community’s unique needs.
3. New Demographics and Customer Base
Co-op’s strategy includes expanding into areas previously underserved, particularly rural communities and high-traffic locations. As these stores open, more people in nearby areas will seek out convenient retail options.
4. Adapt to Changing Consumer Expectations
As convenience store shoppers are increasingly looking for services beyond just groceries, it’s important to evolve. According to a 2023 study by IGD, the UK’s convenience store market grew by 3.1% last year, driven by an increase in demand for click-and-collect services and delivery options. The key to success is adapting to these new consumer expectations.
How Co-op Is Innovating Convenience Retail
Co-op is not just focusing on expanding its physical footprint; the retailer is transforming the convenience store model by integrating new technologies and services. Here’s how Co-op is adapting to the changing market:
The Franchise Advantage
Franchise operations are a core part of Co-op’s strategy. With up to 50 franchise stores planned for 2025, this model allows Co-op to:
- Enter hard-to-access locations like university campuses and petrol stations.
- Build on its 2024 success in innovative spots such as a hospital and a Royal Navy training facility.
This approach ensures that Co-op stores are within everyone’s reach, wherever they live.
Digital and Delivery Services
Co-op is making strides into quick commerce by partnering with delivery platforms like Just Eat, Uber Eats, and Deliveroo to offer fast, reliable delivery to customers.
Co-op’s collaboration with Deliveroo has increased its share of the UK’s quick commerce market by 12% over the past year, with a significant rise in online orders during peak periods.
Sustainability and Energy Efficiency
Sustainability is a cornerstone of Co-op’s expansion. The retailer plans to install up to 76,000 solar panels across 700 stores by 2026, in a bid to reduce its carbon footprint.
Additionally, refurbished stores will feature energy-efficient designs, reflecting Co-op’s dedication to ethical and eco-friendly retailing.
The UK’s convenience store market is increasingly seeing a shift towards sustainability. 35% of consumers now prioritize eco-friendly products and businesses, making sustainability an important factor in consumer loyalty.
Diversification of Store Services
Co-op’s new stores will offer more than just groceries. Parcel collection and return services, bill payments, and ATM services will be available in many new locations. Co-op’s expansion isn’t just about more stores—it’s about transforming how we shop. These stores will go beyond traditional retail, offering:
- Parcel collection and returns
- Payment services
- Quick online delivery fulfillment
With these added services, Co-op stores will double as local hubs, bringing convenience to the heart of every community.
The demand for services like parcel collection has surged in recent years, with UK parcel deliveries reaching over 3 billion annually. Offering these services can set your store apart from competitors.
Building Community Through Memberships
Co-op isn’t just about shopping—it’s about community engagement. The retailer aims to grow its membership programme to eight million members by 2030, offering:
- Member-price savings.
- Support for local causes.
This vision ensures that Co-op remains deeply rooted in the communities it serves.
Key Insights from Co-op's Expansion: How Convenience Store Owners Can Outstand the Competition
The Co-op’s ambitious plan to open 75 new stores in 2025 is big news in the UK convenience retail sector. With 25 stores to be operated directly by the Co-op and the rest franchised, this expansion is poised to transform the landscape of convenience shopping, giving you, as a convenience store owner, key insights into how the market is shifting and what opportunities you can leverage to thrive.
Here’s a closer look at how this expansion affects you and your business:
1. More Foot Traffic Means More Opportunities for You
Co-op’s commitment to making its stores more accessible to customers—whether they live in rural towns or busy city centres—means more people will be out and about, shopping for everyday essentials. As Co-op increases its presence, you’ll likely see an uptick in local foot traffic and heightened competition.
For you, this is an opportunity to stand out. Think about how you can improve your own store’s customer experience to keep people coming back for more. One effective way is to enhance your store’s layout, making it easy for customers to grab what they need quickly and go. A clean, well-organised store, with clearly marked sections for popular items, can help you keep up with the convenience model that Co-op is pushing.
2. Enhanced In-Store Services: Make Your Store a Local Hub
Co-op isn’t just opening new stores; they are setting up community hubs that offer services beyond just selling food and drink. These include parcel collection and returns, payment services, and fast online delivery fulfilment. For convenience store owners, this could be a model to follow.
Offering services like parcel collection, bill payments, or even small-scale postal services could give your store an edge in the local market. Adding these types of services provides an additional layer of convenience for your customers, making your store a go-to for everything from groceries to everyday essentials and even post-office-like services. You’ll become a one-stop-shop, gaining loyal customers who value your wide array of services.
Pro Tip: If you offer a parcel collection service, consider integrating MPOS systems to streamline the process. MPOS self-service kiosks, for example, can allow customers to quickly drop off and collect parcels, reducing waiting times and boosting customer satisfaction. This convenience can lead to repeat business and positive word-of-mouth recommendations.
3. Franchising Offers New Business Opportunities
With up to 50 new franchise stores set to open in 2025, Co-op’s franchising model is bringing convenience stores to locations that might have previously been difficult to access. As a convenience store owner, this shift presents an opportunity for growth—especially if you’re considering expanding your own business.
Think about how you can tap into the franchise trend. If you own a successful store, you might want to consider expanding your reach through a franchise model. Alternatively, if you’re looking to invest, opening a franchise store in an emerging location could be a low-risk way to tap into an established brand with strong backing.
Pro Tip: Franchising enables you to benefit from the proven business model and customer loyalty that Co-op has spent years building.
4. Store Refurbishments: Keep Your Space Fresh and Future-Proof
Co-op isn’t just building new stores; they’re also refurbishing up to 80 existing locations. This trend towards refurbishing older stores is a vital lesson for convenience store owners. Your store’s design and functionality are just as important as the products you sell.
Investing in regular refurbishments can help keep your store appealing to customers and in line with current trends. Fresh paint, better lighting, and an updated layout not only attract new customers but also improve the overall shopping experience.
Consider modernising your store’s technology too. If you’re not already using MPOS systems, now might be the time to look into them. They can streamline your checkout process, improve inventory management, and create a seamless customer experience.
Pro Tip: Upgrading your point-of-sale (POS) system with MPOS technology can help you save time and reduce errors. Imagine a customer walks in and uses an MPOS self-service kiosk to quickly scan and pay for their groceries. This adds to their convenience while freeing up staff to focus on other tasks.
5. Quick Commerce Growth: Meeting Customer Expectations for Speed
Co-op’s push to increase its share of the quick commerce market to over 30% is a clear signal of how important speed is in today’s retail landscape. With delivery services powered by Just Eat, Uber Eats, and Deliveroo, Co-op is doubling down on fast service. This trend in quick commerce means your customers are more likely to expect fast service—whether they’re in-store or shopping online.
This expectation for quick service can directly impact your store’s operations. Offering fast, local delivery and picking up on-demand trends can set you apart. Whether you’re fulfilling orders for customers in the neighbourhood or delivering to nearby offices, offering quick commerce options could be a great way to boost your sales.
Pro Tip: Investing in MPOS products could play a major role in streamlining this service. With self-service kiosks or hand-held terminals, your staff can quickly handle in-store orders while your team focuses on delivery fulfilment, all while improving operational efficiency.
6. Sustainability: Green Growth for the Future
Co-op’s plan to install up to 76,000 solar panels across 700 sites in the next three years shows how seriously they’re taking sustainability. As a convenience store owner, sustainability might not always be top of mind—but it’s something customers are increasingly looking for.
You can make your store more environmentally friendly by implementing small changes that reduce waste and energy usage. For example, consider switching to energy-efficient lighting or offering more eco-friendly product options.
Pro Tip: Beyond just energy-saving initiatives, think about using MPOS systems that track customer data and stock in real-time. These systems can help you make smarter decisions, from reducing waste to improving stock levels, ultimately benefiting both the environment and your bottom line.
7. Building Member Relationships: Loyalty and Community Engagement
Co-op’s membership programme is a core part of their strategy to grow their customer base, with a target of reaching eight million members by 2030. For convenience store owners, this highlights the importance of building customer loyalty and engaging with your community.
You can build a loyal customer base by offering discounts, loyalty rewards, and special promotions for frequent shoppers. Consider creating your own membership programme that rewards customers for their patronage. Offering exclusive deals or a loyalty app can increase customer retention and boost sales.
Pro Tip: MyDD Points is a powerful in-store loyalty program designed to help you attract and retain loyal customers. By seamlessly integrating it with your existing MPOS system, you can reward customers for their purchases, enhancing engagement and boosting sales.
The Road Ahead
Co-op’s 2025 plans underscore its commitment to being the ultimate convenience retailer. With 75 new stores, 80 refurbishments, and a focus on sustainability and community, Co-op is setting a high bar for the retail industry.
Whether you’re a loyal Co-op shopper or a business owner inspired by their model, one thing’s for sure—2025 is shaping up to be a game-changer for convenience retail in the UK.
Consider incorporating modern technology like MPOS to streamline your operations and improve customer satisfaction. Whether you’re planning a refurbishment or preparing to launch a new location, taking notes from Co-op’s expansion strategy can help you elevate your business and ensure long-term success in this dynamic market.
So, what’s next for your convenience store? Let’s embrace the future of retail and make it a win-win for both customers and owners.
