Australia’s convenience industry one of the strongest, AACS report
Australia’s convenience industry has been described as one of the strongest in the world, with new data showing that the sector is outperforming the grocery sector.
The newly released Australasian Association of Convenience Stores (AACS) 2016 State of the Industry report found that the Australian convenience industry is now valued at AUD $8.3 billion, excluding petrol sales.
Value growth in the convenience channel for 2016 was 4.5 per cent, outpacing pharmacy, liquor and grocery.
AACS’s Chief Executive Officer, Jeff Rogut, has attributed the growth in convenience to innovation from leading businesses.
“The short and long term outlook for the convenience industry in Australia is undeniably positive and the 2016 result underline the value proposition of convenience stores in the Australian retail landscape,” he said.
Food plays vital role in convenience sales
Food accounted for 44 per cent of all convenience store sales in 2016 with Rogut saying more progressive food offerings represents the future of the industry.
“Convenience stores are increasingly capitalising on important growth categories like On the Go Food and fresh coffee, continuously elevating the quality, variety and freshness of the food on offer,” he said.
Convenience sales help with falling petrol prices
Fuel sales volumes grew by 5.9 per cent in 2016, up from 1.8 per cent in 2015.
Petrol prices showed a -9.2 per cent year-on-year drop. Customers are however spending more money on convenience items within petrol station stores to make up for the price fall.
Tabaco still contributing significantly to sales
Despite increasing taxes on tobacco, the product category is still accounts for approximately 38 per cent of a typical convenience stores sales.
“Interestingly, while tobacco price boards play an increasingly integral role, 85 per cent of convenience shoppers still choose their preferred brand, despite tax hikes and plain packaging legislation,” Rogut said.
Call for convenience be able to sell packaged alcohol
Rogut used the release of the report to speak out about recent recommendations from the Select Committee on Red Tape which he said calls for convenience stores to be able to sell packaged alcohol.
“Convenience stores around the world are able to sell packaged alcohol and Australia is one of only a few countries where this is illegal,” he said.
“There’s no credible reason for this and the recent Select Committee recommendations have shined the spotlight on this inconsistency,” Rogut stated.
- The top 5 trends forconvenience stores expanding in 2017
- What the sale of Woolworths Petrol will mean for Australia’s convenience and food industries
- Caltex powers on without Woolies, newconvenience strategy
Domino’s customers can now use a virtual voice-activated assistant to order their pizzas for them.
Aldi has confirmed a number of new store locations, all set to open by the end of 2017.
Australian steakhouse, Hog’s Breath, has won an award from animal advocacy group, PETA.
Australia’s best Christmas hams for 2017 have been determined at the 2017 PorkMark Ham Awards.
A new McDonald’s UK ad may signal a new future direction for the global fast food giant.
The Australian Packaging Covenant Organisation, the agency charged by government to meet the target ...
KNOW why the supermarket industry is on the threshold of a fresh wave of competition.
THE Cattle Council of Australia has returned from a tour of Indonesia declaring there’s a prosperous...