“Foodvenience?”

Jeff Rogut CEO AACS

What a terrific study tour to the USA a couple of weeks ago. Convenience stores buzzing with customers and the NACS Show buzzing with excited industry people from all over the convenience world.
One of the more interesting buzz words I came across on this tour was “Foodvenience”. The meaning though was very evident when visiting C-Stores – it was all about food. Food and beverages for now or for later. Customers being served with their needs efficiently and pleasantly in modern, bright and clean stores.
The focus in the stores visited was also food and beverages. Very little evidence of the products that typical convenience stores used to stock, but not really sell in any meaningful volumes. Often all that some of these products did was support the perception that stores were expensive when compared with supermarkets that sold the same items.
Now it’s all about fresh meals, salads, bakery, healthier options and beverages of all types, including alcohol. Certainly tobacco is still a major category in all stores with typical prices still well below those in Australia.
The lessons for the Australian market? Many of our stores are well on the road to improved food offers; however the potential that still exists is enormous. The US industry now talks about ‘Foodvenience’ rather than just convenience and a number of well known brands now see themselves as food stores that happen to sell gas, rather than the old days of gas stations that also had a food offer…….and judging from reports customers also see them in that light.
From a recent report by Nielsen: “In the report released at the 2017 NACS Show in Chicago, Nielsen named the top ranked c-stores by brand equity. Wawa, Pa.-based Wawa had the highest equity among convenience stores in 2017, followed by Westborough, Mass.-based Cumberland Farms”… both of these stores were visited during our AACS Study Tour to Orlando. “In addition, according to Nielsen, one third of convenience shoppers expect to purchase fresh food in the convenience channel in the future. And when it comes to foodservice, convenience retailers should focus on differentiating the destination by offering fresh ready-to-eat/healthy foods, as quality is the biggest claimed barrier for purchasing fresh food in c-stores.”
Watch for details of the AACS 2018 Overseas Study Tour to see where we will be heading for new insights and experiences.