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Newly published research findings from the Australasian Association of
Convenience Stores (AACS) on the convenience store sector, collated at
the conclusion of 2008, underlines the impact the recession has had on
the Australian economy.
The AACS’s annual ‘State of Industry’ report, compiled by Nielson,
is based on a sample of over 1,900 convenience store
outlets. There are 4,200 member stores of the AACS alone, with
AACS members employing in the region of 100,000 Australians, so its
contribution to the economy and employment is significant.
Sales and profit were hit hard in the convenience store sector in 2008.
In the years 2004 to 2007 there was an average increase in merchandise
sales of nearly 10% per year. In 2008, however, increases in sales
across the sector slumped to .8%. Convenience store profit, for the
first time since 2005, decreased on average across the sector although,
according to research partner Nielson, the growth of the most
profitable product lines in 2008 grew by 2.8% to just over $2.7
billion, a significant drop from the 7.8% profit growth that took place
in 2007.
“This latter research finding will be driven by a number of factors,
with the inconsistency of legislation in regard to the selling of
tobacco high up on members’ frustrations,” says new AACS Executive
Director, Sheryle Moon. “The AACS fully supports government objectives
to reduce smoking rates in Australia, particularly among teenagers,
however we would like to work with governments around Australia to
ensure that any future tobacco reforms minimise unintended consequences
and avoids imposing unnecessary compliance costs on business.
Ms Moon joined the AACS because it is an organisation committed to
change. “I am attracted to the diversity of the association,” she says.
“From mum and dad corner store operators to large manufacturing
suppliers, from multi-store operators to remote rural retailers,
convenience stores play a valuable role in the Australian community.
“My goal is establish the organisation as a discrete and influential
voice in the retail and manufacturing sectors, helping it become a
contender in contributing to the formation of government policy
decisions, at both the federal and state levels.”
CstoreWorld 230909
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