Reflections on the year that was

Jeff Rogut

As 2013 draws to a close, and some of our peak retail days still to come, it is worthwhile reflecting on the year that was.

Our annual ‘State of the Industry Report’ was successfully launched in May and this showed merchandise sales growth during the previous year of 3.4%. At the half year this had improved to 4.9%. Despite relatively tough trading conditions our retailers are optimistic and we have every reason to still have ‘confidence in convenience’. This is despite the continued impact of aggressive discounting by the major supermarkets in many categories such as confectionery, beverages and of course milk and bread as well as the proliferation of petrol discount dockets. Our 2013 report will be launched in early May 2014 and we will delve into more detail of how we performed in all of these key areas.

Tobacco plain packaging has been with us now for 12 months. We have borne the brunt of the flawed tobacco plain packaging exercise which has done nothing to curb smoking or sales of tobacco but has put enormous pressure on our retailers and also encouraged illicit tobacco sales growth. We did have a win in having poorly thought through government regulations on graphic health warning rotation amended which would again have put huge unnecessary burdens on retailers for absolutely no logical reason.

In some categories such as alcohol, our stores are still excluded from offering packaged beer or wine to satisfy customer needs as similar stores do responsibly and successfully in other major countries. Again the major supermarkets dominate this area. We continue to talk with state and federal governments on this important issue for the industry.

The first ‘AACS/CCA Innovation Challenge’ for Universities was held this year and had a great reaction. Some excellent presentations were made by finalists at a Members breakfast, and good ideas were forthcoming. The prize for next year has been increased from $2000.00 to a fantastic $10000.00 – more details will follow early in the New Year.

Our Convenience Simulation programs were well attended during the year, however we recently were notified of the sudden passing of our very respected and well liked facilitator, Geoff Wright. He will be missed at future programs.

The AACS Convenience Leaders Summit as well as Gala and Awards dinner were held at Parliament House in Canberra in August – excellent, well attended events in our nation’s capital.

The AACS overseas Study Tour to the US was extremely well supported, and we visited terrific locations in Orlando, Savannah and Atlanta, and had some memorable experiences. Our PJ Award winners, Cameron Bird from CCA and Stephanie Foster from BP won the Supplier and Retailer Global competition at the NACS Show – a great achievement.

AACS continues to lobby politicians of all persuasions as well as regulators on matters that negatively affect our industry, or on initiatives that could have a positive impact for the long term viability of our industry. We will continue the battle on petrol theft which costs our industry millions of dollars in lost profitability and is also a real safety concern for operators, their staff and customers.

In November our AGM was held. We thank Karim Sumar from Caltex, the outgoing Chair and the Board for their dedicated work over the past year and welcome Peri Hunter from BP, the incoming AACS Chair as well as your new Board, for the next year.

Importantly I wish to thank you, our Retail and Supplier Members, for your feedback, encouragement and support which I have received throughout the year. 23 years after its establishment AACS is relevant more than ever in a speedily changing and very competitive retail environment.

I wish you and your families all the very best for Christmas, and the New Year 2014 and hope to see you soon at one of our many events.

Sincerely,

Jeff Rogut
CEO AACS