Convenience, speed, safety drive garage forecourt store sales
SOUTH African consumers’ habits are driving the country’s R35 billion convenience retail sector, which currently commands 10% of total market retail spend.
This is according to the 2017 Nielsen South Africa Shopper Trends Report, which found that the increasingly timestarved nature of consumers’ lives was driving the evolution of the sector, and is the channel of choice for weekly on-the-go consumption purchases, late night shops and everyday emergency purchases.
This means that despite South Africa’s current pressurised retail environment and consumers having less to spend on impulse purchases, there is excellent potential for growth within branded garage forecourt stores such as Engen Quickshop, BP Express and Caltex Freshstop and branded superettes such as Pick n Pay Express, USave and 7-Eleven.
Gareth Paterson, Nielsen South Africa’s head of retailer services, said time was precious and shoppers were looking for an accessible store.
“Retail stores on fuel station forecourts are meeting this need with their proximity to shoppers’ homes and work, longer operating hours and growing range of products and services.”
Paterson said the reality driving this growing interest was that this format had gone beyond pure impulse or top-up purchases such as milk, bread, sodas, snacks and cigarettes, and was expanding into broader product ranges and service areas which include bakery, fresh and convenience foods and beverages, including speciality coffees.
“Those stores that offer ready-prepared foods and beverages which can be consumed on-the-go are preferred by timestrapped individuals.”
He said that given that South African shoppers were being driven by a strong need for convenient access, they are also looking for differentiators, such as ease of parking, longer opening hours, staff who provide excellent customer service and a pleasant and safe store environment.
Paterson added that the report showed that as much as 89% of these spontaneous consumers frequented just two to three convenience stores of choice along their daily routes, while convenience consumers motivated by ease and speed don’t display high loyalty. They have good awareness of the various forecourt retail brands, provide frequent visits and are more likely to recommend their preferred stores, thereby creating “organic ambassadors” for the retailer brands.
“When it comes to store attributes, consumers prefer those stores with a loyalty programme, efficient checkout points, well presented shelving and displays, and stores which offer the preferred brand or product they are looking for.”
He said the study found that upper LSM shoppers were most likely to frequent convenience outlets and interestingly, more men (58%) were likely to consider buying everyday grocery items at this kind of outlet than their female counterparts (42%), while the average monthly spend at these outlets is R357.
“Convenience outlets present a storehouse of opportunity as consumers’ lifestyles evolve. The key is to tap into the shopping missions and consumers needs to maximise this with the right strategy.”
Meanwhile, Jason Muscat, a senior economist at FNB, said September retail sales registered a “very robust” 5.4% yearon-year expansion, with all categories apart from hardware growing in the month.