Rachel White dissects NIQ data to spotlight the fight for footfall and shopper frequency amid changing consumer demands
Retailers are innovating at an unprecedented pace to capture shopper attention and drive footfall. We learned, only recently, that Lidl is set to open its first in-store pub in the UK, while Sainsbury’s is refreshing its local convenience stores to meet evolving consumer needs.
These shifts aren’t just for show – they reflect a broader trend, according to NIQ’s recent UK state of the nation report which shows the retailers that gained market share in 2024 – Tesco, Sainsbury’s, Lidl, M&S, and Ocado – are those winning the fight for footfall and frequency.
NIQ data also reveals a key factor behind this success: the rapid growth of smaller store formats, which are outpacing overall grocery multiples in value growth and gaining year-on-year market share. These formats align perfectly with the rising demand for convenience-driven shopping missions like ‘Treat for Today’ and ‘Dinner for Tonight’.
Why the mission matters
Shopper behaviours are always shifting, with mission-based trips now becoming a crucial battleground for retailers. NIQ’s Homescan data shows a five percent increase in overall shopping trips in 2024, with trips to buy ‘Dinner for Tonight’ growing by eight percent, now accounting for around 15 percent of all basket spend. As more consumers seek quick and convenient meal solutions, supermarkets and convenience stores are well-positioned to capture this demand.
At the same time, at-home consumption is becoming a bigger priority for consumers. Around 45 percent of all food and drink purchases still happen outside of traditional grocery retailers – through cafes, restaurants, and pubs – but a growing number of shoppers are redirecting their spending towards meals at home.
This shift represents a significant opportunity for supermarkets, convenience stores, online grocery platforms, and rapid delivery services to capture a greater share of food and beverage sales. Retailers that align their offerings – through the right product portfolios, store layouts, and merchandising strategies – will be best positioned to capitalise on these evolving shopping missions.
Promotions also remain a critical lever in the battle for shopper loyalty. In fact, we are currently seeing the highest level of promotional spend in five years, with almost a quarter of all value sales coming from promoted lines. Shoppers have become increasingly value-conscious, with savings and discounts becoming a norm rather than a bonus. This trend is further supported by loyalty schemes – 99 percent of shoppers in our recent Homescan survey report owning at least one loyalty card.
Whether they’re called loyalty, membership, or discount cards, they offer shoppers access to exclusive price reductions. It’s a promotional mechanic that nearly 80 percent of respondents identified as the most likely to drive purchase. These schemes not only incentivise spend and encourage return visits, but they also allow retailers to collect valuable consumer data, fuelling more targeted marketing efforts and enhancing retail media offerings.
The evolution of store formats
To meet changing shopper missions, retailers are evolving their store formats at pace. Tesco plans to open over 150 Express stores in the next three years, while Sainsbury’s is adding 20 new supermarkets and 25 convenience stores this year. Aldi and Lidl are also accelerating expansion, with 30 and 48 new stores planned, respectively.
This trendreflects a broader transformation in the retail landscape. Large stores are expected to get smaller as online grocery continues to grow, reducing in-store spend. At the same time, smaller stores are evolving to accommodate more comprehensive shopping trips, making them more relevant for changing consumer needs.
To stay ahead, retailers must adopt a flexible, shopper-centric approach to store formats, ensuring their footprint aligns with where and how consumers want to shop.
Retailers that integrate promotional strategies into these evolving formats by offering exclusive deals via loyalty schemes or tailored in-store offers stand to gain both in footfall and customer engagement. Combining promotional pull with format agility creates a powerful proposition that meets today’s consumer expectations.
Omnichannel – The key to winning retail
Winning in physical retail alone is not enough. With NIQ data showing that 60 percent of shoppers now engaging with FMCG brands across both online and offline channels, retailers must integrate their omnichannel strategies to remain competitive. The future of retail isn’t just about footfall, it’s about creating seamless shopping experiences across all consumer touchpoints.
A strong omnichannel approach ensures that retail and media channels work together to engage consumers at every stage of the purchase journey. Collaboration between brands and retailers is key by leveraging data, media, and digital platforms to drive conversions. Successful partnerships are already emerging, from social commerce on TikTok to YouTube search strategies that take shoppers from consideration to purchase. Retailers and brands that embrace these strategies can enhance consumer engagement and maximise ROI.
Retail success in 2025 will come down to agility and understanding changing shopping missions, adapting store formats and embracing omnichannel engagement. The retailers that do this effectively will not only win footfall but also secure a greater share of consumer spending in an increasingly competitive landscape.
Rachel White is the Managing Director of NielsenIQ UK & Ireland
