Confidence in Convenience

Time to refocus? Jeff Rogut Chief Executive Officer Australasian Association of Convenience Stores Limited An interesting editorial appeared last week in the UK Guardian and an extract is as follows: “Yesterday it was Morrison’s turn to come clean about becoming a basket case. After reporting £176m in losses for last year, it revised down expected profits for the next and effectively conceded that margins were going to be squeezed into the indefinite future, as a result, not of a passing cyclical dip, but owing to what the chief executive, Dalton Philips, called “a paradigm shift”. Aided by booming bottom-end retailers, such as Aldi and Lidl who have come from nowhere to snatch a combined market share of a substantial 7%, customers ground down by austerity are hunting out value like never before, establishing what Mr Philips calls “a new price norm”. This environment has had grave implications for Tesco, too,…

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FAST CASUALS SEEK TO BE A DESTINATION FOR SNACKS

CHRISTINE LAFAVE GRACE MARCH 13, 2014 In November, Technomic identified “Every daypart is a snack daypart” as one of its 10 foodservice trends for 2014. New consumer numbers from our 2014Snacking Occasion Consumer Trend Report bear that out: A slight majority of U.S. consumers (51%) say they snack at least twice a day. That’s up from 48% who said the same in 2012. In addition, nearly one-fifth (19%) of consumers say they snack three times or more daily. Perhaps unsurprisingly, grazing is especially popular among younger consumers: 42% of those ages 18–34 say they’re snacking more frequently now than they were two years ago. Foodservice outlets from convenience stores to casual-dining restaurants have sought to capitalize on consumers’ growing interest in anytime snacking in recent years by rolling out a range of small bites, to-go snack cups and half-portion options. Here, retail stores absolutely have the upper hand with consumers,…

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Building the Bakery Business

Convenience Store Decisions March 6, 2014 Over the past 12 months, sales of packaged sweet baked snacks and desserts came close to the $13 billion mark, according to a report released by market research publisher Packaged Facts. The report, entitled “Packaged Sweet Baked Snacks and Desserts: U.S. Market Trends,” projects that sales will exceed $14 billion in 2017. That growth in dollar sales is expected to be fueled by several factors, including higher prices from smaller pack sizes that have higher per unit costs. Smaller sizes and single-serve portions are also anticipated to resonate with consumers who are looking for little indulgences, help with portion control and sizes compatible with a snacking-on-the-go lifestyle. Figures from Information Resources Inc. (IRI) research organization showed that sales of bakery products at convenience stores overall topped $2.2 billion last year, down 3.84% from 2012. Pastry/doughnut sales were over $1.2 billion, down 1.38%. Cookies, with…

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Category Blurring Is Great News for C-stores

March 10, 2014 CSNews Without a doubt, convenience store retailers should be looking to the future with open-mindedness and optimism. The retail landscape is evolving and traditional retail categories — e.g., grocery store, quick-service restaurant, pharmacy, big-box, convenience store, etc. — are blurring. Once viewed within a narrow “snacks, gas, cigarettes and beer” frame by many, the nature of the convenience retailer is now expanding along with consumers’ attitudes about just what types of merchandise they will purchase from a c-store. Fifty-seven percent of Millennial shoppers purchase some of their groceries at a convenience store. 7-Eleven, Kwik Trip, Wawa and Circle K stores are among the top 20 places consumers look to buy groceries when they aren’t going to a traditional grocery store. Twenty-eight percent of people will pick up a fresh meal at a c-store, but women are less likely than men to do so. These statistics are loaded…

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Nielsen: Retailers Missing Mark on Meeting Seniors’ Needs

March 11, 2014 CSNews NEW YORK — With the World Health Organization reporting that more than 2 billion people worldwide will be over the age of 60 by 2050, age is becoming more important to retailers and manufacturers, according to the findings from a new Nielsen global survey on aging. The research shows that industries are largely unprepared to meet the needs of these consumers. In fact, the latest study found that companies in the United States completely miss the mark when it comes to engaging and catering to the needs of aging consumers, which could mean the loss of a huge opportunity for retailers and manufacturers, according to Nielsen. “The findings serve as a wake-up call to manufacturers, retailers and other marketers that need to bolster efforts to better reach and cater to an aging demographic,” said Todd Hale, senior vice president of consumer and shopper Insights at Nielsen.…

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McDonald’s February sales fall as burger chain suffers “negative results” in Australia

JEFF WHALLEY MARCH 11, 2014 HERALD SUN MCDONALD’S says global sales fell in February and the burger chain recorded “negative results” in Australia. Chief executive Don Thompson pledged to improve sales as he acknowledged the performance would hurt the group’s results in the first quarter. Worldwide sales fell 0.3 per cent. In the group’s region covering the Asia-Pacific, Middle East and Africa sales were down 2.6 per cent. That region includes McDonald’s Australia. The sharp drop was blamed on weakness in Japan, a shift in timing of Chinese New Year and “negative results in Australia”. Mr Thompson said the fast-food chain would concentrate on “customer-focused initiatives” including boosting menu variety, increased convenience and affordability. Sales fell 1.4 per cent in the US and 0.6 per cent in Europe.

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