AACS COMPETITION

Nikki Novakovic

Joshua Sumura

RMIT University

Convenience

Store Innovation

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CONVENIENCE STORES IN AUSTRALIA

16.7% Growth 2008-13

AU 1.6 Billion2013

1,206Number of outlets across Australia in 2013

-4.3%Projected growth 2014-18

AU 1.6 BillionEstimated in 2018

958Estimated number of outlets

in 2018

CURRENT SITUATION FORECASTS

SOURCE: Euromonitor, 2013

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THE PRESSURES

Competitor Advantages

Competitive pricing

Able to pass cost savings to

consumers

Larger scale of product

offerings

Strong loyalty programs

Increasing hours of operation

Low technology and system

usage

Consumer negativity towards

high prices

Downward trending profit

margins

High level of competition

The Pain Points

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CONVENIENCE STORE DRIVERS

24/7 Availability

Lower travel cost and ease of

parking

Wide range of goods & services

Speedy shopping

Location

Strong relationships with

suppliers

Competitive Advantage Future Drivers

24/7 Availability

Reducing consumer effort

Leveraging emerging

technology

Demand for 24/7

Demand for product expansion

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CHANGING CONSUMER TRENDS

Time-poor consumers drive

industry growth

Mobile and tech driven society

More impulse purchase driven

Desire for new products

Need for convenience

Seek empowerment

Look for incentives

Key Trends

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THE WAY FORWARD!

Multi-transactional Touch Screen Kiosk

Provides simplicity and convenience

Integrated Mobile Application

Connecting with consumers

Novelty & Speciality Products

Creating product differentiation

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• Water, electricity, phone, fines

• Integrated real-time payment solution

Bill Payment

MULTI-TRANSACTIONAL TOUCHSCREEN KIOSK

Reducing consumer effort and increasing engagement through technological innovation

• Concerts, sporting events, movies

• Partnership with Ticketek

Ticket Purchase

• Real time money transfer to any account worldwide (ANZ, NAB, PayPal)

• Partnership with banks and/or Western Union

Money Transfer

• Multiple networks (Optus, Vodafone, Telstra)

• Self-printed recharge vouchers

Mobile Recharge Vouchers

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MULTI-TRANSACTIONAL TOUCHSCREEN KIOSK

4 services integrated in one touchscreen kiosk

Customers make all payments at the kiosk

Has integrated merchant technology

Accepts cash and all major cards

How it works• Increased foot traffic• 24/7 availability • Simple and convenient• Value-added service• Competitive advantage

targeting underserviced consumer market

• Additional revenue opportunities

Benefits

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• Quicker and easier ‘wave the phone’ payment

• Secured and encrypted data

Easy Payment System

MY CONVENIENCE STORE – MOBILE APP Faster transaction speed, convenience and relationship building

• Loyalty discounts and rewards

• Special app holder deals

Need-Based Rewards

• Store locations• Trading hours • Products and

services offered • Special deals

Information Hub

• Track consumer purchases, habits, desires and motivations

• Social media integration

Targeted Marketing

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MY CONVENIENCE STORE – MOBILE APP

Download the application and register an account

Link a credit or debit card to get a unique code

Pay by scanning the code over a merchant sensor

Earn rewards through integrated incentive programs

Customers offered short term deals to drive impulse purchasing

How it works24/7 connectivity with consumers

Flexible and convenient

Faster transaction speed

Protected by a PIN number

Security

Increased loyalty

Targeted advertisement and promotions

Benefits

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NOVELTY PRODUCTSDiversifying Australian culture is in demand for novelty and international products

• Holidays Halloween, Christmas

• Sporting events World Cup, Olympics, Australian open, Formula 1, Racing

• Entertainment events Concerts, movies

• Limited & foreign confectionery products

Key themes:

• Increased foot traffic• Differentiation • Increased revenue

and profitability• Competitive

advantage • Value-added

products

Benefits

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NOVELTY PRODUCT IDEAS

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CALL TO ACTION

In order to stay relevant and to drive growth, convenience stores must:

Excite consumersIncentivise consumersEmpower consumers

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INTEGRATED WAY FORWARD

Novel Expansion of current product portfolio

Integrated Mobile Application

Multi-Channel Self-Serve technology

In order to stay relevant and to drive growth, convenience stores must:

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.Thank You

Any Questions?