Positive industry outlook convenience stores in 2010

The report, based on general perceptions, financial and store metrics and category data from petrol and convenience industry retailers, shows that 66 per cent of operators are confident of achieving growth in 2010. Many credit the Government's economic stimulus package as playing a key role in this; with 89 per cent regarding it a success.

Growth in merchandise sales reflects changing consumer behaviour.

The report also reveals the solid growth in merchandise sales in convenience stores, up 8.1 per cent. Most merchandise areas increased, with Australians buying 6 per cent more of their groceries at convenience stores. Beverages and
foods enjoyed similar growth, energy and sports drinks continued their impressive growth; up 17 percent with a 6.4 per cent share of all merchandise sales, and water and health and beauty products performed strongly. These segments are
gradually replacing tobacco as drivers of convenience store growth and profitability.

Sheryle Moon, Executive Director of the AACS, said that the increase in sales and varieties of products shows that shopping at convenience stores is now entrenched in the Australian way of life.

"With a convenience store for every 1,500 people, nearly every Australian stops at one. The growth in food services, particularly fresh bakery and coffee, indicates busy Australians are eating on the run and convenience stores are helping to
service this need,” said Ms Moon.

"The increase in grocery sales is particularly interesting, as it suggests consumers are changing their buying habits away from the large, fortnightly supermarket shop to a more frequent, smaller basket of goods with a top-up shop.

“Another emerging trend is that ‘impulsiveness’ in shopping has reduced in every category. Nearly 80 per cent of all shoppers knew exactly what they were purchasing in store and for the first time actual spend was in line with intended
spend, suggesting shoppers were more planed and value conscious due to the economic uncertainty,” Ms Moon said.

Consumers better off but still spending carefully

Another indicator that consumers aren't feeling the pinch as badly as previously can be seen in the dramatic decrease in the cost of stolen petrol, drive-offs returning to a "normal" level of around $90 a week, down from a staggering $520
in 2008. However consumers are still trying to stretch their dollar as far as possible, waiting longer to fill up and with more fuel per occasion, the average fuel transaction up 30 per cent from 27 to 35 litres.

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