Corner stores a hit to wallets

Shoppers are charged more in convenience stores compared to big supermarkets.

SHOPPERS buying drinks, sweets and snacks from convenience stores are being charged mark-ups as high as 47.5 per cent, an industry document reveals.

But outlets deny ripping off customers, pointing to the increasing costs of running around-the-clock businesses.

Average profit margins for products are revealed in the Australasian Association of Convenience Stores' latest state of the industry report.

Soft drinks, energy drinks and other beverages have the highest mark-up at 47.5 per cent, followed by general merchandise (44.7 per cent); confectionery (44.5 per cent); snacks (44.4 per cent) and "on the go" food such as sandwiches and pies (43.8 per cent).

Margins for milk, bread and groceries are about 33 per cent, while smokes are 20.5 per cent.

The association's CEO Jeff Rogut said most outlets were small businesses and franchises needing to cover the cost of 24-hour trade, high weekend penalty rates and utility expenses such as chilling drinks.

"They don't have the volume of sales of the big supermarkets, they don't run their own warehousing and they only earn a few cents per litre on fuel," Mr Rogut said.

"As an industry, we are more transparent about product category margins than others. We have nothing to hide."

The report found the industry's national sales rose 3.4 per cent last year to almost $16.3 billion, outpacing grocery chain growth for the first time since 2008.

The figure excludes fuel sales at convenience sites linked to Coles and Woolworths.

Best product performers were food "on the go", energy drinks, iced coffee, hot drinks and Slurpees.

But the major supermarket wars were blamed for slumps in sales of bread, milk and fuel.

Aggressive supermarket discounts on chocolate bars were also stealing shoppers, the report found.

Mr Rogut repeated calls for governments to consider allowing convenience stores to sell packaged alcohol to compete against the supermarket duopoly.

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Sweet tooth bites the corner store

Aussies are turning away from classics like the meat pie in favour of picking up lollies and choccies at service stations, a new study shows.  Picture: Campbell Brodie Source: adelaidenow

SUPERMARKET servos - those petrol station and convenience stores - are eating away the market of the traditional corner store, and a lot of what's being eaten is chocolate.

Supermarket servos - often bearing a Coles or Woolworths logo - increased by almost 300 to an estimated 3,450 in the past two years, new research has found, while petrol-only outlets and corner stores are dwindling.

The big driver of the change has been food and drink offerings, with spending on sweets and snacks shifting to supermarket-owned outlets, according to a new report from researcher BIS Shrapnel.

BIS Foodservice head Sissel Rosengren said the value of corner store trade fell from $754 million in 2010 to $613 million in 2012 and that independent convenience store numbers fell by 1406 to 2725 nationwide in the same period.

At the same time, the number of Woolworths/Caltex supermarket servos rose from 611 stores to 848.

"The demise of the corner store is a fact," Ms Rosengren said.

"We fully expect this decline to continue due mainly to the rise in the number of supermarkets and convenience stores attached to service stations."

The researchers also found that Aussie fast-food tastes had shifted away from the iconic meat pie and sauce towards chocolates and lollies.

Despite a post-GFC slump in impulse spending, confectionery sales at service stations, corner stores and other so-called "route trade" outlets grew by 19 per cent from 2010 to 2012 to $711 million.

Chocolate accounted for nearly two-thirds of that spending.

"This is typical consumer behaviour during tougher and uncertain economic times," Ms Rosengren said.

"Chocolates can be small and inexpensive, and we like to reward ourselves every now and then with a little treat."

Meat pies still lead in the baked goods category but sales have fallen nine per cent since 2010.

Sales have also slipped for ice creams and other snack foods, but sausage rolls and cakes recorded increases of four per cent and 14 per cent respectively.

View the original article here

Sweet tooth bites the corner store

Aussies are turning away from classics like the meat pie in favour of picking up lollies and choccies at service stations, a new study shows.  Picture: Campbell Brodie Source: adelaidenow

SUPERMARKET servos - those petrol station and convenience stores - are eating away the market of the traditional corner store, and a lot of what's being eaten is chocolate.

Supermarket servos - often bearing a Coles or Woolworths logo - increased by almost 300 to an estimated 3,450 in the past two years, new research has found, while petrol-only outlets and corner stores are dwindling.

The big driver of the change has been food and drink offerings, with spending on sweets and snacks shifting to supermarket-owned outlets, according to a new report from researcher BIS Shrapnel.

BIS Foodservice head Sissel Rosengren said the value of corner store trade fell from $754 million in 2010 to $613 million in 2012 and that independent convenience store numbers fell by 1406 to 2725 nationwide in the same period.

At the same time, the number of Woolworths/Caltex supermarket servos rose from 611 stores to 848.

"The demise of the corner store is a fact," Ms Rosengren said.

"We fully expect this decline to continue due mainly to the rise in the number of supermarkets and convenience stores attached to service stations."

The researchers also found that Aussie fast-food tastes had shifted away from the iconic meat pie and sauce towards chocolates and lollies.

Despite a post-GFC slump in impulse spending, confectionery sales at service stations, corner stores and other so-called "route trade" outlets grew by 19 per cent from 2010 to 2012 to $711 million.

Chocolate accounted for nearly two-thirds of that spending.

"This is typical consumer behaviour during tougher and uncertain economic times," Ms Rosengren said.

"Chocolates can be small and inexpensive, and we like to reward ourselves every now and then with a little treat."

Meat pies still lead in the baked goods category but sales have fallen nine per cent since 2010.

Sales have also slipped for ice creams and other snack foods, but sausage rolls and cakes recorded increases of four per cent and 14 per cent respectively.

View the original article here

Sweet tooth bites the corner store

Aussies are turning away from classics like the meat pie in favour of picking up lollies and choccies at service stations, a new study shows.  Picture: Campbell Brodie Source: adelaidenow

SUPERMARKET servos - those petrol station and convenience stores - are eating away the market of the traditional corner store, and a lot of what's being eaten is chocolate.

Supermarket servos - often bearing a Coles or Woolworths logo - increased by almost 300 to an estimated 3,450 in the past two years, new research has found, while petrol-only outlets and corner stores are dwindling.

The big driver of the change has been food and drink offerings, with spending on sweets and snacks shifting to supermarket-owned outlets, according to a new report from researcher BIS Shrapnel.

BIS Foodservice head Sissel Rosengren said the value of corner store trade fell from $754 million in 2010 to $613 million in 2012 and that independent convenience store numbers fell by 1406 to 2725 nationwide in the same period.

At the same time, the number of Woolworths/Caltex supermarket servos rose from 611 stores to 848.

"The demise of the corner store is a fact," Ms Rosengren said.

"We fully expect this decline to continue due mainly to the rise in the number of supermarkets and convenience stores attached to service stations."

The researchers also found that Aussie fast-food tastes had shifted away from the iconic meat pie and sauce towards chocolates and lollies.

Despite a post-GFC slump in impulse spending, confectionery sales at service stations, corner stores and other so-called "route trade" outlets grew by 19 per cent from 2010 to 2012 to $711 million.

Chocolate accounted for nearly two-thirds of that spending.

"This is typical consumer behaviour during tougher and uncertain economic times," Ms Rosengren said.

"Chocolates can be small and inexpensive, and we like to reward ourselves every now and then with a little treat."

Meat pies still lead in the baked goods category but sales have fallen nine per cent since 2010.

Sales have also slipped for ice creams and other snack foods, but sausage rolls and cakes recorded increases of four per cent and 14 per cent respectively.

View the original article here