The
undercurrents of retail foodservice customer migration have hit hard in
Australia. In fact two of the largest
grocery store chains Coles
and Woolworths are focusing on
opening new smaller footprint stores, focusing on Ready-2-Eat and Heat-N-Eat
fresh prepared food in an attempt to garner back customers lost to the
convenience store sector.
NACS online reports that “In Sydney, Woolworths has
been grabbing up 200- to 400-square meter spaces for locations designed to
compete with 7-Eleven and City Convenience stores. “We have a small number of
smaller format supermarkets that are designed to best meet the needs of the
local community,” said a Woolworths spokesman. At the “Woolworths Small
Format,” the locations will have a more restrictive product range and will be
“feeder” stores to the medium-sized Woolies Metro locations.”
With continued urbanization Australia’s consumers
are time starved, multi-cultural seeking full flavored fresh food options
nearby and the C-stores are providing just that. Grocery stores attempting to maintain
relevance and staying close to the consumer need to downsize the footprint
while increasing fresh options.
Jeff Rogut, CEO of the Australasian Association of
Convenience Stores, told NACS while in the United States attending the NACS
Show. The number of Australians living in cities is behind a new golden age for
convenience stores in general. The question is what will become of legacy
grocery stores?
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