Convenience Stores in Australia Industry Market Research Report Now Updated by IBISWorld
The Convenience Stores in Australia industry is set to recover over the next five years after a tough period. For this reason, industry research firm IBISWorld has updated its report on the Convenience Stores industry in Australia.
Melbourne, Australia (PRWEB) August 11, 2013
The Convenience Stores in Australia industry has operated in a rapidly changing environment over the past five years. According to IBISWorld industry analyst Lauren Magner, “Falling consumer sentiment, fluctuating income growth and continued competition from small-format grocery stores, supermarkets and fuel retailers have posed challenges for industry operators.” Industry sales are expected to fall by an annualised 3.6% over the five years through 2013-14. Despite the tough retail landscape, operators have remained upbeat by continually reviewing product ranges and profit margins to offer consumers value for money.
The performance of operators has been mixed throughout the industry. “The Lucky 7 network, the industry player with the most stores, has grown rapidly, as independent convenience stores seek marketing support and the benefits of a group buyer,” says Magner. Industry players have failed to match the rapid growth of convenience stores that retail fuel (which are not included in the industry), especially those backed by retail giants Coles and Woolworths. Convenience stores will continue to face tough retail conditions. Industry revenue forecast to fall by 1.3% over 2013-14 to $4.4 billion. Concerns regarding the increasing cost of living and the end of the mining boom continue to weigh on consumers. Additionally, convenience store operators will continue to face stiff competition from major grocery chains. Sales will also be influenced by continued consumer demand for healthy food options and competition from other retailers selling fuel. The Convenience Stores industry has a low, but increasing level of concentration. The overwhelming number of enterprises are owner-operated independent stores. Even stores under banner groups and franchise agreements are usually run as individual businesses. Major players in the industry are Metcash Limited and 7-Eleven Stores Pty Ltd.
Retail demand will benefit from improved conditions across the domestic economy, a rise in discretionary incomes and higher employment over the five years through 2018-19. However, strong competition from external retailers will affect profitability, with product margins expected to be reviewed further by convenience store operators in a bid to match prices at supermarkets. Future sales will be influenced by the flow-on effects of plain packaging on cigarette products, which was introduced in December 2012.
For more information, visit IBISWorld’s Convenience Stores report in Australia industry page.
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IBISWorld industry Report Key Topics
Convenience stores sell a range of products including cigarettes, beverages, confectionery, snack foods, ready-to-eat foods, communication goods, magazines, newspapers and general merchandise. This includes milk bars and corner stores, and excludes businesses that primarily operate as supermarkets, sell specialised foods (fruit, bread, deli goods) or generate the majority of their sales via fuel retailing.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/8/prweb11012959.htm