GLOBAL CONVENIENCE SYMPOSIUM growing demand, changing structures
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1 GLOBAL CONVENIENCE SYMPOSIUM growing demand, changing structures Individual presentation from session 1: EVOLUTION OF FORECOURT CONVENIENCE STORES IN SOUTH AFRICA
2 EVOLUTION OF FORECOURT CONVENIENCE STORES IN SOUTH AFRICA Jason Naicker Associate Director of Retail Services, South Africa
3 DEFINING THE NIELSEN BASKET Convenience stores have15% share of the NIELSEN DEFINED MARKET FORECOURT Convenience stores have 4% share of the NIELSEN DEFINED MARKET Convenience grows annually at 13% vs. the MARKET at 8% Convenience stores have 29% share in the TOP 20 CATEGORIES FORECOURT Convenience stores have 10% share in the TOP 20 CATEGORIES
4 R14.8bn sales driven through FORECOURT convenience Over 3,000 forecourt convenience stores in SA Over 5,000 forecourt service stations in SA On average consumers spend almost DOUBLE at FORECOURT convenience stores than on FUEL
5 BULK SHOPPING FREQUENCY AVERAGES ONCE PER MONTH Shopping frequency Weekly Every 2 weeks Every month times on average per month Less often Base: All Supermarket shoppers (n=2516) Ref: Q87. How often do you do your main grocery shopping, where you buy a lot of groceries, including all the essentials?
6 GREATER FREQUENCY FOR TOP UP SHOPPING TRIPS Regular top up trip Daily 9% 2 to 3 time a week 30% Weekly Every 2 weeks 8% 23% 7 times on average per month Every month 5% Less often 25% Never 1% % Agree Base: All Supermarket shoppers (n=2516) Ref: Q88. How often do you do a regular top up shopping, where you buy a few things?
7 Defined Basket - Forecourts 70 R66 Consumer Panel Service households Increasing spend in mid to higher income hh s and increased frequency in low end hh s, reduced basket size Occasions per Buyer R29 R41 Rands per Occasion 8 Occasions per Buyer R24 19 R17 Rands per Occasion 7 7 Occasions per Buyer R30 R36 Rands per Occasion 4 3 Occasions per Buyer R32 Rands per Occasion Total SA LSM 1-4 LSM 5+6 LSM 7-10 Channels Used in P4W % Used the Channel Change (2011 vs 2010) Change (2010 vs 2009) Hypermarkets 29% 3%p 1%p Supermarkets 95% 0%p 0%p Spaza 47% 3%p 1%p Vegetable Vendor 40% 1%p 8%p Butcher 40% -1%p 5%p Convenience Stores (Net) 23% 3%p 5%p Modern Pharmacy 20% 2%p 4%p Liquor Stores / Bottle Shops 19% -1%p 4%p Department Stores 18% 1%p 6%p Bakeries 14% 2%p 4%p Cosmetics Shops 13% 1%p 4%p Cash & Carry 11% 3%p -1%p LY TY Shopper Trends 2510 Panel Continually increasing penetration
8 Forecourts - Top 15 Value (Rmil) Ranked Categories Cigarettes Carbonated Soft Drinks Air Time Energy/Sports Drinks Snack Products Mineral/Spring Water Bread Chocolate Coated Lines Sugar Lines Ice Cream/Sorbet Long Life Juice Chewing Gum Fresh Milk Moulded Slabs & Bars Magazines Short Life Juice Excl Mixes Dairy Fruit Mixes Biltong Biscuits Contraceptive/Condom R 705 R 609 R 392 R 377 R 313 R 308 R 292 R 198 R 189 R 176 R 158 R 117 R 115 R 102 R 83 R 76 R 70 R 61 Contraceptive/Condom Energy/Sports Drinks Chewing Gum Biltong Disposable Lighters Mineral/Spring Water Air Time Flavoured Milk Chocolate Coated Lines Eye Drops Breakfast Bars Ice Tea Ice Cream/Sorbet Cough Drops Cigarettes Sugar Lines Magazines Snack Products Carbonated Soft Drinks Long Life Juice R 1,478 Forecourts - Top 15 Share Ranked Categories 13% 12% 12% 12% 12% 12% 11% 10% 10% 9% 8% 8% 8% R 2,701 23% 21% 21% 20% 19% 29% 33%
9 ENGEN QUICK SHOP DELIVERS ONE STOP CONVENIENCE Partnership with Woolworths enables retailer to deliver high quality food at regular prices, 24/7
10 TOTAL BONJOUR! COFFEE CHAIN PARTNERSHIP Increasing traffic to both store formats
11 BP EXPRESS BUILDING A RETAIL PARTNERSHIP The second forecourt c-store to align with a retailer after successful Engen/Woolworths partnership
12 MORE STORES EMBRACING LOYALTY PROGRAMS
13 CALTEX FRESH STOP FRESH AND AFFORDABLE PRODUCE Stores offer a variety of salads, smoothies and fresh dairy products and have a grocery section that stocks everyday items grocery at affordable prices
14 SASOL MY DELIGHT NEW APPRAOCH TO HOME COOKING Stores are strategically positioned on major traffic and arterial routes where traffic delays are common
15 SHELL SELECT KEEPING IT SIMPLE Sells typical c-store product offerings cigarettes, coffee, airtime but also known for monthly combo promotions advertised at petrol pumps
16 COMBO DEALS
17 Thank You
18 CONTACT US FOR MORE INFORMATION send us an follow us on read our column: stay tuned for our new, upcoming youtube series meet us at the relevant global c-events Sep 23 rd, London, Future of Convenience Conference Oct 08 th, Las Vegas, NACS Show Nov 04 th, Cologne, first European Convenience Show
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