VICTORIA – Australian convenience stores have outpaced the growth of the grocery channel for the second year running, recording sales growth of 3.7% in 2013 to reinforce the important role convenience stores play for consumers and the economy, according to the annual State of the Industry Report launched by the Australasian Association of Convenience Stores (AACS) this week.
Based on the measured data provided to AACS, the convenience channel grew in value by 3.7% last year, building on the 3.4% growth figure recorded the year before, while the grocery channel recorded growth of just 2.3% in 2013.
In 2012, convenience stores grew at a faster rate than the grocery channel for the first time since 2008. “Convenience stores in Australia have not only proven their resilience amid tough retail trading conditions, they have again demonstrated the value proposition the convenience channel provides to customers whose shopping patterns and behaviors continue to evolve,” said Jeff Rogut, CEO Of AACS, in a press release. “Stores must maintain their focus on anticipating customer needs and adapting their offer, however signs suggest a positive future for the industry awaits as stores continue to prioritize innovation.”
According to the latest AACS State of the Industry Report, after the food category dominated growth over the last two years, 2013 saw the non-food category outperform the growth of food at +3.8% versus +3.5%. Once again tobacco contributed the largest dollar value growth, despite the trend of shoppers trading down to cheaper brands and further government intervention. Despite a seemingly endless string of excise increases and the plain packaging debacle, the value of the tobacco category continues to grow with an increase in 2013 of 5.4%.
“Convenience stores continue to evolve and innovate their offering to respond to changes in consumer behavior. Looking to the future, shoppers will increasingly expect retailers to be available anytime and anywhere, and convenience stores have the capacity and appetite for innovation to deliver a unique service to customers,” said Rogut.