The Value of Impulse
Date: 17 April, 2018
Engaging customers to spend more in-store.
Building basket value with current shoppers purchasing within the store is the greatest opportunity for any retailer. If you can convince shoppers to spend more while in store with current offers, then you drive both value of basket and item count. In our 2017 Convenience Measures Australia (CMA) Shopper Report, we identified that the average basket size is 1.9 items per transaction with a $8.90 value. While the average basket size was just under two items, almost 50% of all transactions had just one item in the basket.
This is one of the biggest opportunities for retailers and suppliers to engage the customer on each visit, as well as building a longer term ‘more frequent’ shopper. One of the ways the channel currently drives basket value is through promotions, with the average basket jumping to 2.8 items and a spend of $10.70. This, however, is now only 20% of total shoppers across the channel, which has been a decreasing number based on two factors:
Please click here to read full article: C&I Magazine April-May 2018
A long, long time ago, we used to sell coffee in a push button machine and have powered milk mixed with water and sell approximately 4 cups of coffee a day. Well, believe it or not, we are talking a mere five years ago.
If you haven’t been out in the trade lately, you are certainly missing a dynamic change in the way C-stores are innovating, away from what we have known as the standard for the channel. Retailers are endeavouring to create a point of difference and give shoppers a reason for choosing a particular outlet over another.
Click here for full article: C&I Magazine April-May 2017
Over the last few years, we have seen convenience retailers expand food and snacking options in store. We are seeing retailers move away from a basic offer of pies and sausage rolls to a more developed and broader offering. While pies and sausage rolls remain the core, the offer has developed to a mix of wrapped generic offerings to unwrapped café style offers. Each retailer, however, has seen the need to continue to look at broader and better quality products.
This is particularly evident in sandwiches, which have improved in the quality and variety that is now available in the channel. We have also seen the expansion of salads and sushi in this market, and more recently into take-home meal solutions into some outlets. On top of this, we have also seen bakery snacks like donuts and muffins, as well as a broader healthy snacking, gain greater exposure at the expense of more traditional categories in prime locations.
Please click here for the full article: C&I Magazine June-July 2017
In May this year, a group of retailers and suppliers attended the UCB Study Tour of Amsterdam, UK and Ireland. The idea of the study tour was to understand the emerging trends and speak first hand to retailers who have moved aggressively into the food space while maintaining successful businesses.
What was evident on the trip is that while the migration into food has been pronounced, traditional Convenience still prospers on the back of store format changes and greater presence through the store. The retailers we spoke to, especially in Ireland, highlighted a need for a balanced approach, one which delivers foot traffic drivers while maintaining an impulsive presence. After visiting nearly 60 stores across the three countries, I worked through what, in my belief, were consistent themes of the success of Convenience in these markets.
Please click here for full article: C&I Magazine August-September 2017
In such a competitive landscape we are always trying to improve our offer as if you don’t you will be left behind. During the year, I was fortunate to see a few overseas markets and some outstanding offers in which convenience stores are continuing to outpace the growth of supermarkets. Over the last few years, the level of investment by most retailers has led to improvements in how people use/shop the channel.
The truth is we had to, as movement would happen naturally with the increase in fuel efficient cars and having less of need to use the “servo”. As we migrate to true Convenience through the instore offerings that are broader than smokes, drinks and lollies, we have had to create both a better environment and offer for shoppers. In visiting overseas markets, the focus has been on the broadening food offers both in Convenience and on the go outlets, as well how creating an atmosphere or a place to stop has enhanced the offer. I believe that, while I haven’t visited all Convenience markets, that we can learn by what WAWA, Sheetz and Rutter’s have done in Philadelphia as well as what SPAR, Applegreen and Topaz have achieved in Ireland. Some outstanding offers that have been able to achieve significant growth as well as a real destination for Convenience shoppers.
Please click here for full article: C&I Magazine February-March 2018
As I have discussed in past articles, the convenience channel is evolving by broadening offers and creating destination occasions outside of the traditional fuel category. I have been fortunate to present at several conferences this year and feel that the message of ‘investing in your future’ is getting through. This goes for both retailers and suppliers because, as retailers, you need to own your future and suppliers need to adapt your offerings/products to meet that future.
There are several factors forcing the hand of retailers and suppliers to change and to look at how you can develop offers that drive foot traffic. The reality is that if you don’t or haven’t acted on current trends by now, you are playing catch up. I see three things that are driving the current investment by retailers into new store formats:
To read full article, please click here: C&I Magazine December-January 2018