ALEXANDRIA, Va. – “Global Trends” in the February issue of NACS Magazine put the spotlight on the transformation of Sweden’s convenience and fuel retailing market, which has reversed a decline in total c-stores sales in Q4 2012 to a 2.5% increase in Q3 of 2015.
Growing consumer demand for fresh, better quality food and industry-wide collaboration are having a positive impact on the convenience market in Sweden. Historically, Sweden’s convenience market has struggled as a result of regulation, competitive threats (from grocery supermarkets) and labor costs. Now, it is reaping the benefits of changing consumer needs and has skillfully adapted and stepped up to the plate.
“We are a piece of the living puzzle and convenience is a megatrend,” said Magnus Carlsson, CEO of Reitan Convenience Sweden, a Norwegian-owned company that operates two major chains in Sweden: Pressbyrån and 7-Eleven.“Without us, everything would be much more complicated for the consumer. We smoothly and easily provide what is needed for everyday living. The most important categories are fast food and beverages; they drive sales and are increasing steadily. From an international perspective, we are at the forefront when it comes to fresh food, bake-off and hot and cold beverages.”
NACS Insight has honed in on Sweden for its 2016 Convenience Summit – Europe, and for good reason. Stockholm is the second most prolific tech hub in the world after Silicon Valley, and over the next few years, digital innovations will continue to shape significant changes in retail.
Sweden has given birth to more unicorns (the name given to tech companies founded after 2003, now worth over $1 billion) than almost anywhere else in the world. These massive brands include Spotify, Skype, Minecraft maker Mojang and the payments service Klarna. “Sweden is a test bed for digital innovation and also a highly competitive, innovative and developed market for convenience retail,” said Insight Managing Director Dan Munford.
“Sweden is a fascinating market, not least because it is on track to becoming the world’s first cashless society. We’re excited to be able to offer our CSE attendees hosted visits to leading retailers like Preem, Statoil, Pressbyran (Reitan) and Espresso House, to name a few,” Munford said.
Fresh Food Focus
In Sweden, the increased demand for freshness and quality comes especially from women and the younger generation.
“We aim to prepare fresh food in the shops,” said Carlsson at Reitan. “For example, we assemble sandwiches and serve freshly pressed juice in front of customers in the stores.” Self-serve salads are also delivered at the right time in the right location, he added.
Coffee has a starring role in Sweden too, as in other international convenience markets. “Today we serve a coffee that matches the best coffee shop. I am convinced that the winner in the battle of convenience is the one who is most successful in what the customers want to eat and drink,” Carlsson said.
Food preparation in front of the customer, rather than pre-prepared options, is a great differentiator in Sweden. And the country is also moving its focus to healthier options in c-stores. New ideas from Reitan include protein-based salads, raw food and ginger shots. “Customers don’t just say they want healthy options, they choose them as well,” said CEO Magnus Reitan, winner of the NACS Insight European Industry Leader of the Year Award 2015.
According to Reitan, the convenience market is growing fast with increasingly more specialized foodservice. In response, the retailer has created its own versions of new concepts such as self-serve frozen yogurt, a juicing concept and a doughnut offer.
Reitan is also very optimistic about the overall trend for convenience. “People are constantly on the move and cities are expanding their transport services. That’s a huge opportunity for us—our biggest and most profitable stores are in travel hubs and we specialize in impulse products. The future of convenience is bright,” he said.
The fresh food focus and drive to meet changing consumer needs are poised to keep Sweden’s convenience retail market on an upward trajectory and make the country one to watch for the global c-store sector.
To experience this dynamic market firsthand, join your global convenience retailing peers at the upcoming NACS Insight Convenience Summit – Europe. The event kicks off in Stockholm on June 5, moves on to London June 7 and wraps up with store tours in Dublin.
Go to conveniencesummit.com and register today.