Small stores could turn unhealthy food restrictions to their advantage, says data analyst

The new rules – due to come into force next year – will limit where HFSS products can be displayed and ban special price promotions.

But because stores below 2000 sq ft are exempt from the display restrictions, the IRI says that the new regulations could present them with an advantage.

An IRI statement said: “An estimated 64.3% of convenience stores (36.1% of convenience by turnover) are below 2,000 sq ft, so the impact on these stores is minimal due to being exempt from display space restrictions.

“Being the only store type not impacted by the display space restrictions may lead to future opportunities for stores of this size.”

Even larger convenience stores can manage the new rules well if they are prepared, said IRI.

Joe Harriman, HFSS strategic consultant at IRI, said:  “Retailers and manufacturers should be reassured that there are options to mitigate the risks of HFSS and create opportunities, especially in the larger convenience format.

“High selling HFSS products will be moving from display into the aisles and so the competition for in-aisle space will be tough for manufacturers.

“They firstly need to understand what impact HFSS restrictions will have on them right across convenience and then create an appropriate response.

“As a result of the HFSS restrictions retailers will need to make larger than usual range changes, and whilst this will mean that some manufacturers will find themselves needing to justify shelf space, others could be well placed to take advantage of the premium space opportunity that will become available to non-HFSS brands.”