Convenience stores need to capitalise on the healthy eating trend if they hope to change consumer perception and position themselves as high-quality alternatives to the multiples.
This was the opinion of James Lowman, chief executive of the Association of Convenience Stores (ACS), speaking last week at an event hosted by the Chartered Institute of Marketing’s Food, Drink & Agriculture Group.
Lowman admitted that it was often a struggle for c-store retailers looking to increase their fruit and vegetable range, with many paranoid over wastage levels and others struggling against a consumer perception that the produce is not the same quality as it is in supermarkets.
He said: “Even good retailers take a lot of persuading to step into fresh produce, as it is very hard work.”
However, Lowman insisted that the broad consumption changes of the last 10 years, with shoppers tending to move towards healthier options such as fruit and vegetables, need to be grasped by the convenience sector. He highlighted the government’s Change4Life programme, which supports the c-store sector, as an initiative that is helping the industry head in the right direction.
He said: “Our market sector has not been quick enough to adapt to [consumption changes] and we want to promote fruit and vegetables in store. Changing the perception of the customer is one of the most significant things a [convenience] retailer can do.”
He added that the threat from the major multiples is still a major problem that c-stores need to overcome, but delivering a clear point of difference, value for money and a real sense of community retailing will make a difference, said Lowman.
Lowman said: “The major multiples are a threat and that is the mindset that many convenience retailers are still in - they are right, but only part right.
“It’s easy to forget about us but… our market is growing faster than the rest of the grocery market. Customers want a choice of supermarkets, but they also want an option for a specialist, differentiated and local shop within five minutes’ walk.”
Convenience multiples such as Tesco Express and Sainsbury’s Local are well researched, but they all offer the same range, Lowman told delegates. “There are fewer SKUs in a Tesco Express than in an independent,” he said. “There is a perception that a Tesco Express will offer better value than an independent, but that is not always true.
“The problem when competing with the multiples is the buying price differentials… A third of convenience retailers admit to buying stock from the supermarkets. The market is skewed towards these players.
“The ombudsman that will come in, in whatever form, may iron out some of the excesses in the supermarkets’ buying power - but I don’t expect it to do any more than that,” he added.
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