ACNielsen Industry Update
March/April 2003

Double Digit Convenience Growth Continues

 

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riven by sales growth in all stores rather than growth in store numbers, the robust pace of growth in the Convenience channel continues unabated.

ACNielsen's C*Track service provides census scanning data from selected groups of convenience banners (Shell, BP, Mobil, Caltex, 7-Eleven and Nightowl). Combined they represent 1,800 Tier 1 and Tier 2 outlets and generate annual merchandise sales of over $2.5b.The C*Track service is available from ACNielsen via subscription or as one-off snapshots. The data on this page is based on a basket of major categories, and covers all Tier 1 and 2 outlets.The latest addition to the service is Gull WA, with 28 Tier 1 stores in Western Australia and the ACT. Woolworths Plus Petrol (circa 280 outlets, most of which are Tier 2) can be integrated into the C*Track service. All data on this page excludes both Gull and Plus Petrol.
Chart 1 Growth contribution from new stores is declining, in favour of healthy organic growth [Click on image to enlarge]	The robust pace of growth in the Convenience channel continues unabated, at over 13% (value) vs. last year. This compares to a 6% growth rate in Grocery. Whilst in the early part of 2002 much of the Convenience growth was generated by increasing store numbers, the more recent growth is driven more organically.
Chart 2 Double-digit growth in every state, with recent strong growth in SA [Click on image to enlarge]	Every Mainland State is achieving double-digit growth, with South Australia showing some recent buoyancy which is partly driven by growth in store numbers.
Chart 3 Category Size in Total Convenience [Click on image to enlarge]	More than three-quarters of a billion dollars worth of sales is generated by cigarettes, with another $37m from RYO, Cigars and smoking accessories. That makes tobacco by far the biggest contributor to merchandising sales. They are followed - at some distance - by carbonated/still beverages, confectionery and milks. Newspapers and magazines have now overtaken ice cream and snack foods
Chart 4 - Value Growth by Category in Total Convenience [Click on image to enlarge]	Albeit from a low base, a healthy 30%+ growth is generated by both Nutritious Snacks and RYO/Cigars/Accessories, followed by 20% growth in Magazines/Newspaper sales and 15% growth for ice cream. At 5%, snack foods is lagging behind - although its growth rate is healthier than in the grocery channel.

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