Page 67 - Demo

CATERING FOR FUN SEASON IN A NOVEL, PANDEMIC WAY When convenience stores begin to sport summer merchandise, sighs of relief abound in the lead-up to fun-in- the-sun times, but this year’s party season is set to be somewhat different for the sector, yet not necessarily in a negative way. By Nerine Zoio. The recently released AACS 'State of the Industry Half Yearly Report 2020,' prepared for AACS by Convenience Measures Australia, shows the P&C industry achieved sales growth of 0.8 per cent for the half, helped by a two per cent sales increase in the June quarter. The report shows that just as the pandemic has impacted states and territories differently, so too has the convenience channel varied in performance across borders. Over the year to date, Victoria recorded a 3.7 per cent decrease in total sales while NSW was down one per cent. On the flipside, Western Australia achieved significant growth of 9.3 per cent for the half, while South Australia was up 3.4 per cent and Queensland convenience stores recorded sales growth of 3.3 per cent. “The first-half result for the convenience channel, particularly given the circumstances, is very strong and a testament to the quality of service, safe store environment and consistent hard work of the operators and employees in our industry,” current climate because of the safe and clean shopping environment on offer, and because stores are less crowded. The report shows that growth in the packaged beverages category was subdued at one per cent, with energy drinks and carbonated beverages being the bright spot, having maintained strong growth on a moving annual turnover basis of 3.8 per cent and 3.2 per cent respectively. Food on the go was the second highest achieving category in terms of both dollar and percentage growth in 2019 but declined over the June quarter this year by 4.4 per cent. However, reflecting the unique circumstances, take-home food was up 7.8 per cent in the latest quarter. IRI Worldwide Lead Consultant Justin Justin Nel confirms an economic recession, saying there's no going back, to what was normal, with the new normal comprising a blending of old and new. “It’s an incredibly difficult time for the food and beverage industry,” he cautioned, citing data from two IRI worldwide waves of research in April online shopping increasing significantly. Most people feel their financial situation is worse at this time compared with last year, Mr Nel said, with pessimism rife among Australian consumers – nearly half of those surveyed saying their outlook for the financial situation was not good and that they anticipated it would continue into next year. “They’re expecting the impacts of Covid-19, the recession and things like that to have lingering effects, because many of us have lived through the 2008- 2009 global financial crisis,” he said. “The research in April showed that 45 per cent feel household income is at risk, while 37 per cent of households say their income hasn’t been affected – so 45 per cent of the population is feeling the impact. “This is important for manufacturers because you now have a completely segmented or different market. Half of them are OK – you know, still a little bit pessimistic, perhaps – and the others have been impacted. So, your shopper has changed.” Such a mindset means that penny SUMMER FUN AACS CEO Jeff Rogut said. He adds that many consumers prefer the convenience store experience in the and May, the latter revealing that 74 pinchers can be expected to think twice per cent of surveyed Australians had changed their shopping habits, with TO PAGE 66 SEP/OCT, 2020 CONVENIENCE WORLD 65