“Convenient Convenience”

Jeff Rogut
CEO AACS
October 2014

In Japan where there are over 50,000 well developed convenience stores, or one convenience store for every 2000 people, around 150 convenience located stores within a square mile, and over 1million vending machines, there are certainly lessons to be learned by visitors to that country just as there are in Korea which has 25,000 convenience stores.
The AACS 2014 Overseas Study Tour visited the NACS Show in Las Vegas, and then the major focus this year was Seoul in Korea and Tokyo in Japan to see what new products or trends we should be aware of that may impact our market.
Aside from the warm hospitality shown to us in each country, our group had access to senior operators and companies who shared knowledge openly with us, and for which we are certainly appreciative.
There were also exclusive presentations made to our group, so that rather than just visiting stores as anyone could do, we had the benefit of understanding the background as to how the industry arrived at its current excellent development, as potentially what the future may hold for the convenience industry in the countries we visited, as well as our own.
We often hear from retailers or suppliers about the challenges of implementing innovative new ideas. Yet faced with very competitive conditions, changing consumer demographics and customers who constantly expect fresh new products, the convenience industry does manage to achieve that successfully in the markets we visited.
So what are some of the lessons?
This week there are two presentations made to our group of AACS Study Tour Attendees to provide some insights into the markets and challenges.
Of course the full details of discussions, questions raised etc are not captured here, but these presentations will allow you to gain an insight into the scale of the markets and the fact that the operators are constantly looking to evolve their offers.
The future for our industry is in fresh food – this is a global trend.
How each company goes about this will differ, but unless there is accelerated innovation in this category both by retailers and importantly suppliers, we will be open to risks through not meeting our customers needs for fresh, healthier options as lifestyles change.
Click Here to View the Presentations