Industry News

Responsible retailers have warned Australia’s illicit tobacco wars will explode, with the Federal Government set to hike tobacco tax by 6.8 per cent on September 1 – effectively gifting the booming black-market thousands more customers. Australian Association of Convenience Stores (AACS) CEO Theo Foukkare said since 2012, tobacco excise has skyrocketed by 384 per cent far exceeding the point where it deters new smokers and now only benefits organised crime groups because smokers will continue to buy cheaper, illegal alternatives. “Legal tobacco sales plummeted by 14 per cent over the first six months of this year in AACS member stores – but record nicotine levels in regional areas and growing use in capital cities have been recorded in waste water analysis, as shown in the Australian Criminal Intelligence Commission’s report, which clearly shows people aren’t quitting smoking – they’re just buying and using illegal tobacco, “Mr Foukkare said. “AACS will…

Shell Coles Express and Reddy Express are bringing new bakery products to Victorian fuel and convenience stores. In collaboration with Morgan Hipworth, the Shell retailers are bringing a range of fresh doughnuts, cookies, cinnamon scrolls and muffins to shelves. Made with Australian flour and fresh local ingredients, the range offers ready to go baked goods for on the move consumers. Viva Energy fresh food category manager, Anna McDonald, said that the collaboration marks a point of difference for Coles Express and Reddy Express customers in the Food To Go space. “Whether you’re looking for a sweet treat for yourself, your friends or family, or a snack to enjoy with coffee, there’s something for everyone in our Bistro Morgan range,” said McDonald. “From muffins to scrolls, cookies and the hard-to-resist doughnuts, we know this will be a winner with our Victorian customers.” Hipworth owns popular Melbourne bakehouse, Bistro Morgan, which has…

GS Retail has opened a new concept for its GS25 convenience store business, its first ‘future-ready’ shop, located in Seoul’s Insadong district. The ‘Ground Blue 49’ facility combines both cutting-edge technologies and Korean foodvenience offers to provide a unique retail experience for customers. Sporting a futuristic look and layout, the location spans 220 m2 and is divided into three different zones, including a retail tech area, a Korean food zone, and a K-noodle challenge site. The company aims to set up this cutting-edge facility to pilot new innovations and cater to international tourists. “Our goal is to provide unforgettable, special experiences and memories that can only be had offline, establishing this as Seoul’s new landmark convenience store,” said Kim Cheon-ju, head of the convenience store support division at GS Retail, according to a report by Korea BizWire. Shoppers are greeted by automated stands offering pizzas, coffee and ice cream upon…

Ampol has reported its results for the first half of 2024, with growth in convenience retail despite tough economic conditions. Ampol’s net profit nearly tripled from $79.1 million to $235.2 million, while its net profit on an RCOP basis fell 29 per cent from $329.6 million to $233.7 million. The company’s underlying earnings dropped 13 per cent to $502.1 million, which saw it slash its interim dividend by 37 per cent to 60 cents a share, down from 95 cents the previous year. One of the standout segments for Ampol was convenience retail and its New Zealand business, both of which saw profit increases. In Australia, convenience retail earnings grew 4.7 per cent to $175 million as shop gross margin continued to increase, reaching 37 per cent, through a combination of favourable product and channel mix, attachment and pricing. Matt Halliday, CEO of Ampol, said the company delivered a resilient…

A new State of Small Business Data Report, released today by Square and The Council of Small Business Organisations of Australia (COSBOA), shows Australian SMBs and micro businesses struggling to maintain resilience in the face of tough economic headwinds, with small business owners looking to policymakers and government for more support. Data from millions of transactions processed on Square between January 2023 and June 2024 reveals a two-speed economy in Australia, with local micro and small businesses recovering slower than their mid-market peers in the first half of 2024 (compared to the same period in 2023), and businesses growing at different rates depending on their location, sector, and size. For example, mid-market businesses dipped slightly into negative territory in the July and October 2023 (YoY) quarters before recovering to positive growth, whereas SMBs navigated a longer and deeper period of negative growth. Square data also shows spending across all sectors fluctuating…

Australian Association of Convenience Stores chief executive Theo Foukkare mentioned online (Herald Sun) on the 16 Aug 2024 around 12:00 PM Australian Association of Convenience Stores chief executive Theo Foukkare said he was “not surprised” tobacco store owners wanted to sell up. “Tobacconists who are only operating in the legal market have been losing revenue,” Mr Foukkare said. View article here.