Shop­pers turn­ing to one-stop fore­court stores

Business Day - - BUSINESS & ECONOMY - Su­nita Menon Eco­nom­ics Writer menons@busi­

De­spite the pres­surised re­tail en­vi­ron­ment in SA, there is ex­cel­lent po­ten­tial for on­estop-shops like garage stores and corner shops.

Growth within branded garage fore­court stores like En­gen Quick­stop, BP Ex­press and Cal­tex FreshS­top and branded su­perettes such as Pick n Pay Ex­press, USave and 7-Eleven has been sig­nif­i­cant, ac­cord­ing to Nielsen’s shop­per trends re­port.

SA’s con­ve­nience re­tail sec­tor is es­ti­mated at R35bn and makes up 10% of to­tal mar­ket re­tail spend.

“Time is pre­cious and shop­pers are look­ing for a store that is ac­ces­si­ble,” said Nielsen SA’s head of re­tailer ser­vices, Gareth Pater­son.

“Re­tail stores on fuel sta­tion fore­courts are meet­ing this need with their prox­im­ity to shop­pers’ homes and work, longer op­er­at­ing hours and their grow­ing range of prod­ucts and ser­vices,” he said.

Con­sumers en­joyed the ease of park­ing, longer open­ing hours, ex­cel­lent cus­tomer ser­vice and a pleas­ant and safe store en­vi­ron­ment pro­vided by the shops.

The re­port showed that 89% of these spon­ta­neous con­sumers fre­quented two to three con­ve­nience stores of choice along their daily routes and the av­er­age monthly spend at these out­lets was R357.

“The re­al­ity driv­ing this grow­ing in­ter­est is that this for­mat has gone be­yond pure im­pulse or top-up pur­chases such as milk, bread, so­das, snacks and cig­a­rettes.

“It’s ex­pand­ing into broader prod­uct ranges and ser­vice ar­eas, which in­clude bak­ery, fresh and con­ve­nience foods and bev­er­ages in­clud­ing spe­cial­ity cof­fees,” said the re­port re­leased on Tues­day.

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