Consumer demand for grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues to drive topline sales and bottom line profits at the expense of traditional grocery stores around the world according to Tacoma, WA based Foodservice Solutions® Grocerant Guru®, Steven Johnson.
The Australasian Association of Convenience Stores in there 2016 State of the Industry Report, found that “Growth in the convenience sector has statistically outstripped packaged grocery for the fifth year running, with a massive 4.5 per cent increase in overall sales value in 2016” in Australia.
AACS CEO Jeff Rogut said the strong results are a testament to the industry’s focus on innovation “The short and long term outlook for the convenience industry in Australia is undeniably positive and the 2016 results underline the value proposition of convenience stores in the Australian retail landscape,”
Rogut continued “Nevertheless, the continuing evolution of retail generally necessitates an unwavering focus from our retailers and suppliers to continue to evolve their offering to meet customers’ needs. The good news is that our operators are eager to embrace this challenge. “And it’s clear for customers to see. Consumers who engage with convenience stores each day will have noticed the changes to the in-store environment that have taken place over the last five years.”
In Australia food showed outstanding growth, accounting for 44 per cent of convenience sales by unit in 2016, with still more impressive value growth of 59 per cent. Our own Grocerant Guru® as regular readers know emphasizes that innovative fresh prepared food as an Limited Time Offer’s (LTO’s) drive trial at grocery store service deli’s, convenience stores, and restaurants.
Mr Rogut said a progressive food offering is the future of the industry in Australia especially with young people taking a flexible approach to when and where they purchase food.
The Grocerant niche ‘On-The-Go’ food sector in Australia was also a major source of growth, jumping to 18.5%, up from 13% in 2015 and 3% in 2014 with momentum building expect continued customer migration from grocery to the convenience sector.
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