OPEN ALL HOURS – THE TRUE VALUE OF CONVENIENCE

January 11, 2013

While the debate rages over the economic implications of supermarkets heavily discounting their own home brand milk, potentially impacting smaller retailers and others in the dairy supply chain, the Australasian Association of Convenience Stores (AACS) has called for greater recognition of the overall value of the convenience store offer in modern times.

AACS Executive Director Jeff Rogut said the concept of value is too often interpreted simply as price as the various other elements that contribute to real value are overlooked.

Millions of Australians have visited their local convenience store to buy an ice cold ‘Slurpee’ on a sweltering summer day after school or sport, bought munchies late at night when studying, bought ice or custard on Christmas day, bought a lottery ticket, rented a trailer, bought a cup of hot coffee to sip on the way to work on a chilly morning or simply filled the car when the petrol gauge was low.

“For decades convenience stores have provided a valuable service to the community and in that time they have become a fixture in suburban culture in Australia. They are the modern general store and continue to evolve,” Mr Rogut said.

“Actively involved in local communities, convenience stores are open all hours to service customers’ needs, they carry a range of products proven to be wanted by customers, they offer easy parking, are conveniently located, provide ATMs and other essential services, and participate in regular product promotions.

“Importantly, the vast majority of convenience stores are in the main operated by small business people that employ their families and staff from the local area they serve.

“Supporting these small businesses in the current retail environment and recognising the valuable services they provide is essential for an industry that employs thousands of Australians at a local level.

“However it’s not just retailers who require support in an environment where the major chains are looking for new ways to exploit their market dominance,” Mr Rogut said.

Considering the milk industry as an example, farmers, milk processors and the distribution industry all provide an important service to the community but need support if they are to survive in the long term. There is certainly a place for private brands, but real innovation tends to occur where manufacturers invest in their branded products.

The AACS encourages regulators and politicians to keep a watchful eye on practices that seek to disadvantage small businesses – the major employers in the country and the lifeblood of many communities.

“The need for consumers to support their local independent retailers is greater than ever,” Mr Rogut said

“Supporting local retailers and small businesses now is the best safeguard against the price hikes and continued erosion of choice that could materialise if dominant major retailers continue to sweep away all before them in their aggressive path to growth.

“More than this, it’s important for consumers to remember and recognise the many valuable services convenience stores provide and the special place they hold in the community,” he said.