Australian Convenience Stores Carve Out New Role
Retailers cater to time-crunched consumers with meal solutions and ancillary services.
Feb 10, 2021 | 2 min read
ST LEONARDS, New South Wales—As the industry continues to shift during the pandemic, convenience store operators around the globe have pivoted to meet the changing needs of consumers. With more people sticking closer to home, community stores have benefited from a boost in foot traffic, sometimes from customers who had never set foot in a c-store before this.
“This has been a real eye opener for a lot of people who are discovering new convenience offerings in their local areas,” said Pete Hanson, director of client service at Crossmark in C&I Retailing Magazine. “COVID-19 has educated consumers that convenience stores exist and that they offer a range of solutions which offer convenience for people who are working from home. Now it will be about finding the balance between convenience, price, and the value people place on time, which has always been the challenge with convenience.”
Australian retailers have adapted to the changing needs of consumers by offering more meal solutions, such as ready-to-go meals and hot rotisserie chickens.
“As Australians rely more on convenience stores, operators have an opportunity to carve a niche share in the market that often has bigger margins than big-box retailers. The big opportunity for convenience will continue to be around prepared meals. While lunch and dinner offerings are doing well, the sector is still working out how it can capitalize on breakfast so that’s an opportunity the sector will no doubt work on,” Hanson noted.
Looking toward the future, Hanson pointed out that convenience still continues to dominate what consumers want, and retailers are well poised to be their store of choice.
“With a savvier bunch of consumers now purchasing from convenience stores and local grocers, Crossmark has noticed a big shift from the original convenience push on drinks, chocolates, cigarettes, and milk to a much broader range of products such as ready-to-go meals and healthy snacks,” he told C&I Retailing.
“There is a distinct shift to healthier foods, with plant-based products being the new trend, but tailored ranging is key and retailers need to find the right offer and execute it correctly. While each demographic area is different, there is flexibility to cater accordingly and make tweaks along the way,” he concluded.
To learn more about the breakfast daypart in U.S. convenience stores, be sure to read “Rise & Shine” in NACS Magazine.
