COSTCUTTER, the York-based convenience store chain, has said it remains cautious about 2011, despite expectations the sector will grow.

Research from food and grocery analysts IGD predicted the convenience market would grow by a third, to be worth £42.6 billion by 2015.

It said the growth was generated by 17 per cent of people using convenience stores at least once a day, and 59 per cent twice a week, because there is a growing population who do less planning for their meals and miss more meals at home.

Joanne Denney-Finch, chief executive of IGD, said: “As more and more people live in urban areas nearer convenience stores, retailers and suppliers need to ensure they are aware of the changing profile of their catchment area. And they will have to adapt their product range and merchandising accordingly.”

This trend has also been mirrored by Tesco Express’s opening of a new York store in Low Ousegate and a further store planned for Piccadilly.

Nick Ivel, managing director at Dunnington-based Costcutter, said the convenience sector had certainly seen a boost from the identified change in shopper habits, with some Costcutter retailers definitely benefiting from increased sales as a result.

He said: “The changing retail landscape coupled with a significant change in consumer behaviour has afforded increased sales, but fierce and growing competition from other convenience retailers, and notably the multiples’ expansion into the sector, has meant we have had to do more to support Costcutter retailers in the battle to drive store footfall and sales.”

He said the business had reacted to the competition by putting in place strong promotions on big brands and marketing them effectively to banish the misconception that convenience stores do not offer good value for money.

“Undeniably tough trading conditions, compounded by increasing competition from the multiples and public spending potentially taking another dip as a result of the economic climate, means in line with Great Britain plc, we are generally cautious regarding conditions for 2011,” he said.