2026 marks a tipping point for the UK convenience sector. Faced with an increasingly competitive landscape and a modest CAGR forecast, the old playbook of winning a price war on basic commodities is no longer a long-term strategy for growth. A convenience store’s success, now more than ever, hinges on capturing the shopper who values unique variety and community connection far more than pure cost.
Despite 85% of consumers stating concern about rising costs, grocery remains the one area where they consistently allocate budget, actively seeking out high quality, unique discoveries at their local shop. This is where speciality and local products become vital engines for profitability, providing a differentiation that multiples cannot replicate.
Sixty per cent of UK shoppers prefer visiting local stores that understand their specific tastes. By offering authentic speciality products, retailers can build a loyal customer base that goes beyond the everyday.
Protecting your speciality margin
Shoppers are increasingly looking for maximum satisfaction for their pound, so your goal should be to provide high-impact, unique items that serve as a low-cost alternative to dining out. This could be offering competitive pricing on your basic lines to build customer trust or following the 80/20 principle.
Around 80% of your range should be made up of reliable bestselling brands, with the remaining 20% held for ‘hero’, profit-boosting items. These ‘hero’ lines could be a shelf of local cakes, speciality coffee or an on-trend international line.
No matter your approach, strategic pricing is crucial to making speciality items work. Jeet Bansi, of Meon Value Londis in Stratford-upon-Avon, has shared his approach.
“If you’re offering tahini, for example, you need to know what you’re looking for and what is a good price,” he says. “Do this by looking at your current suppliers and any new ones and see what they’re stocking it at. Also, visit other retailers, and see what they’re stocking these items for.”
Bansi advises looking at what margin you can offer. “Customers need confidence in these products to be enticed to purchase them. Avoid overpricing and review your margin across your whole store rather than line by line.”
Single-serve speciality
Research shows that 73% of consumers are more inclined to try a new cuisine or product if offered as a single-serve snack, rather than a multipack or full meal solution. For example, a £2.50 can of botanical soda or a £1.80 bag of sweet & spicy gourmet popcorn will feel like a justifiable treat, even for some more budget-conscious customers.
There are also health drivers that justify a focus on portion-controlled products. With a significant portion of the UK population actively seeking nutrition-dense portions, speciality snacks that offer ‘functional’ benefits, like protein, gut health, or fibre boosts in small formats are sure to be a win.
Huel Lite is a prime example of a product that caters for those looking for functional benefits, or nutrition-dense portions on the go. The plant-based meal replacement drink packs 25g of protein into 190 calories per serving. Each portion delivers slow-release carbohydrates, healthy fats and 26 essential vitamins and minerals. Our flavours include Chocolate, Banana and Strawberry.
Alternatively, there’s also Bio & Me Oat Bars, available in Toffee Apple, Super Berry and Cocoa & Hazelnut flavours. Each bar is bursting with the goodness of nine plant-based foods for those hectic days.
Consider creating a healthier snacking or speciality fixture and highlight any high-quality ingredient that makes every bite count.
The locally sourced advantage
Incorporating local products is perhaps one of the most effective ways to offer speciality without needing a high-end budget. In fact, ‘hyper-local’ products are not just a point of difference but an operational insurance policy.
This is evidenced by Goran Raven, of Raven’s Budgens in Abridge, Essex, who notes that relying solely on international products and a core range would keep turnover quite low, but local products have significantly increased his store’s revenue.
“We stock both branded honey and locally sourced honey, for example, which outsells its traditional counterpart seven to one,” he says.
Raven emphasises that finding local suppliers requires diligent research and leveraging social media to promote those partnerships.
“Once someone sees our meat range from our local butcher online, they’ll travel miles to come and try them,” he says. “And the quality is much better than our core range lines.”
Price is also negotiable, and Raven says he works backwards to ensure each person within the supply chain makes a profit, without overcharging customers.
“We’re currently selling five lamb kebabs for £5.99, but before putting them on the shelf, we asked whether we all have made the money we need to make, and we had, so I looked at which price we could offer to ensure this stayed the same,” he says.
The key is being competitively priced, aiming for volume sales, and ensuring linked purchases are nearby, as followed by Raven.
He says: “If a customer picks up sausages from our local butcher, they’ll also pick up vegetables, potatoes, and most likely drinks. It not only generates sales, but gives a point of difference to why they should come to you, rather than someone else.”
Merchandise for ‘discovery missions’
More than half of Gen Z and Millennial shoppers now use social media as their primary discovery tool for new food trends, so being the first to stock an on-trend local brand or a niche functional snack turns your store into a destination.
Dedicating a small, rotating section specifically to social media trends, such as pickle-flavoured snacks, functional mushroom coffees, or even the latest craze – chocolate chicken drumsticks – is likely to stand out among any core range.
You can also cross-merchandise and mix speciality products next to your budget ranges. For example, stock a local chutney near own-label cheddar. The speciality item will elevate the entire basket, making the meal feel like an experience rather than a habit.
“If you’re trying to create a certain standard, lean into speciality items a bit more over your core range,” says Bansi. “But we have a nice balance so customers can choose, and they do have that choice in store,” he says. “We follow the good, better and best method wherever possible.”
Meanwhile, at Epicurium, we see speciality items not as an extra, exclusively for affluent shoppers, but as a core survival strategy for all modern convenience stores. This approach protects margins and builds a loyal, recurring customer base that values substance over a bargain.
Driving sales on speciality items
Speciality items might not be for everyone, but here are some top tips from both Bansi and Raven to get started:
- Understand the demographic you’re serving: Bansi says to get to know your customers and start with one or two items to see where the demand takes you, and if they sell well, look at expanding.
- Focus on space: Not all stores are built the same, and every product needs to earn its place. Bansi recommends reviewing your space and current range, determining if there’s room to include speciality items, and taking price into account as to whether it will sell.
- Work backwards: Raven recommends working backwards when it comes to pricing local and speciality items. He says to find out the price, work out the lowest you can go to ensure everyone in the supply chain makes the money they need to survive.
- Walk in your customers’ shoes: Raven says to look at your range through your customers’ point of view, as everyone wants quality for a lower price. “Where you can offer it, go for it and offer low, shouting about it on social media,” he says.
