--- title: it's 'go time' for convenience retailers description: Convenience retailers are focusing on innovation and taking a customer-first approach, which has helped the industry trump grocery growth, year on year, since 2012. image: https://www.playinnovation.com.au/hubfs/sandrachile-A-ojLYLzD_0-unsplash.jpg --- [![PlayInnovation Logo](https://www.playinnovation.com.au/hubfs/PlayInnovation_S2_Logo_RGB-2%20PLAY%202.2%20White%20Logo%20Transparent%20Background-3.svg "PlayInnovation Logo")](https://www.playinnovation.com.au/) [![PlayInnovation Logo](https://www.playinnovation.com.au/hubfs/PlayInnovation_S2_Logo_RGB-2%20PLAY%202.2%20White%20Logo%20Transparent%20Background-3.svg "PlayInnovation Logo")](https://www.playinnovation.com.au/) - [HOW WE WORK](https://www.playinnovation.com.au/how-we-work) - [Insights](https://www.playinnovation.com.au/insights) - [**Explore**Dig deep into unmet needs and prepare opportunity springboards](https://www.playinnovation.com.au/insights/explore) - [**Develop**Generate ideas and begin your concept development](https://www.playinnovation.com.au/insights/develop) - [**Prove**Test out your product and pack, and refine it ahead of launch](https://www.playinnovation.com.au/insights/prove) - [**Monitor**Understand your performance by evaluating in-market results](https://www.playinnovation.com.au/insights/monitor) - [INNOVATION](https://www.playinnovation.com.au/innovation) - [**Innovate Innovation**Refresh and retune your innovation process from beginning to end](https://www.playinnovation.com.au/innovation/innovate-innovation) - [**Fuelling the Pipeline**Get a focused pipeline of opportunities to deliver real growth](https://www.playinnovation.com.au/innovation/fuelling-the-pipeline) - [**Consumer-led Product Development**Agile check-ins with consumers earlier and more often](https://www.playinnovation.com.au/innovation/consumer-led-product-development) - [**Post-launch Radar**Figure out what worked (and why), so you can pivot and optimise](https://www.playinnovation.com.au/innovation/post-launch-radar) - Your Resources - [**Knowledge Hub**Access thought-provoking research on market trends and new product development](https://www.playinnovation.com.au/the-knowledge-hub) - [**Blog**For the latest news and updates on consumer insights and product innovation in FMCG](https://www.playinnovation.com.au/blog) - [**Case Studies**Results that prove we’ve got it. See how we helped FMCG brands innovate better](https://www.playinnovation.com.au/case-studies) SEARCH [Get In Touch](https://www.playinnovation.com.au/contact) Enquire Today ![](https://cdn2.hubspot.net/hubfs/2518731/_PlayMR%202020/Blog%20Page/close-button.png) # it's 'go time' for convenience retailers [![Arrow Down](https://cdn2.hubspot.net/hubfs/2518731/_PlayMR%202020/Global/banner-arrow.png)](https://www.playinnovation.com.au/blog/its-go-time-for-convenience-retailers#next) ## it's 'go time' for convenience retailers by: **[Sarah Kneebone](https://www.playinnovation.com.au/blog/author/sarah-kneebone)** ###### ![sandrachile-A-ojLYLzD\_0-unsplash](https://www.playinnovation.com.au/hs-fs/hubfs/sandrachile-A-ojLYLzD_0-unsplash.jpg?width=913&name=sandrachile-A-ojLYLzD_0-unsplash.jpg) **The Australian convenience industry grew at 4.5% in 2016, and is currently an $8.3 billion industry, according to the AACS State of the Industry Report 2016.** Convenience retailers are adapting. They are focusing on innovation and taking a customer-first approach, which has helped the industry trump grocery growth, year on year, since 2012. What’s fuelling the robust force of the Australian convenience industry? Let's look at the rise of On The Go food. --- ## 'On the go' food One of the biggest driving forces for the convenience industry's growth, is On The Go food. The On The Go food category **[grew 18.5% in 2016 and is valued at $465 million](https://insidefmcg.com.au/2017/05/04/aus-convenience-industry-remains-strong/)** in Australia. Convenience retailers are **responding to changing shopper habits** and the Australian market is beginning to look more like further developed markets across the world. **[Justin Nell (Mintel)](http://www.abc.net.au/news/2017-04-05/australians-are-changing-their-eating-habits/8415526)** recently commented on Australian food trends for 2017: > "We've actually seen a 55 per cent increase in the number of food and drink launches in Australia with an 'on the go' claim between 2012 and 2016". ## Busy lifestyles Increasingly busy lifestyles mean that people are **shopping little and often** and increasingly **buying breakfast and lunch ‘to go’** - with **[21% of metro Australians eating lunch at their desks.](http://www.abc.net.au/news/2017-04-05/australians-are-changing-their-eating-habits/8415526)** ## Coffee culture **Then there’s the [coffee culture](http://www.euromonitor.com/coffee-in-australia/report).** Need I say more, Australia? *(No judgement, I'm addicted too.)* > Grabbing that delicious morning, lunch and maybe even afternoon flat white to go (with a breaky wrap or some banana bread…), is part of many shoppers’ daily lives. For those who don’t insist on visiting their favourite barista each morning, convenience chain **[7-Eleven](http://www.ausfoodnews.com.au/2017/02/06/the-top-5-trends-for-convenience-stores-expanding-in-2017.html)** **has experienced great success** **driving traffic through the door with its $1 coffee offering.** Healthy Options In the cold drinks segment, **[Boost Juice](http://thenewdaily.com.au/life/eat-drink/2017/04/02/food-on-the-go-drive-through-boost/) has tapped into the desire for On The Go drinks**, while resonating with today’s ever-more health conscious Australians. The brand has now opened a drive-through store, to further elevate it’s offering for time-poor shoppers. **As health becomes more of a priority for many Australians**, introducing healthy, fresh, On The Go food options, such as wraps, sushi, sandwiches and salads, is a key opportunity for convenience retailers. Last year, **[Coles tested The Big Yum at Little Coles stores](http://c-store.com.au/2016/08/08/coles-tests-new-convenience-concept/)** in Melbourne, offering a **wider range of healthy snacks and On The Go meals, along with 80c coffee**. This was a strategy built on good quality, fresh choices which targeted office workers and inner-city residents. **These quality products tend to have higher margins, which shoppers are willing to pay a premium for, on the fly**. However, in the first instance, **retailers are using low price items such as cakes, pastries and doughnuts, to get shoppers in the door** – and aware of their new offering. More choice in stores **[Australasian Association of Convenience Stores (AACS), CEO Jeff Rogut](https://www.convenienceworldmagazine.com.au/convenience-industry-outperforms-grocery-fifth-year-straight/) stated that On The Go food’s growth in 2015 was driven by the fresh cake (28.0%), hot pastry (39.8%) and sandwich (21.5%) categories.** > By investing in a more enticing fresh sandwich offering, with fresh daily deliveries in some cases, retailers can ensure that grabbing a sandwich extends beyond restaurants, cafes, and fast food outlets. **You only have to look at the size of On The Go lunch sections of stores in the UK,** such as M&S, Boots and even Tesco, **to see the potential for Australian retailers**, as shoppers grow increasingly time-poor and become more comfortable buying food in convenience stores. At these stores in the UK, there is an abundance of good value choices for lunch; sandwiches, pastas, wraps, pastries, fruit packs, salads and meal deals *(Christmas dinner triple pack sandwich used to be my personal fave).* **Could this be the next big growth opportunity for convenience retailers in Australia?** The upcoming generation **Millennials are also helping drive the ‘grab-and-go’ food culture**, often [seeking out convenience over cuisine](http://www.cstoredecisions.com/2017/02/02/five-food-trends-driven-millennials/#_), with a strong **[‘have it now’](http://www.ausfoodnews.com.au/2017/01/27/how-and-y-millennials-are-changing-packaging.html)** mentality. **[Millennials](https://www.forbes.com/sites/geoffwilliams/2016/12/31/how-millennials-will-shape-food-in-2017/?utm_source=Main%20Company%20List&utm_campaign=b83c544d9d-MILLENNIAL%20MONTHLY%20MAY%202017%20-%20MAIL%20LIST&utm_medium=email&utm_term=0_3e39909c5b-b83c)** are eating out more often and looking for quality, fresh food options – on the go. Going forward, convenience retailers will need to expand or improve On The Go offerings, to win over this generation of consumers. The future of convenience All in all, it looks like the convenience and On The Go food market is only going to get bigger. **[Jeff Rogut](https://www.convenienceworldmagazine.com.au/convenience-industry-outperforms-grocery-fifth-year-straight/)CEO at AACS stated:**   > The short- and long-term outlook for the convenience industry in Australia is undeniably positive and the 2016 results underline the value proposition of convenience stores in the Australian retail landscape. > > The continuing evolution of retail generally necessitates an unwavering focus from our retailers and suppliers to continue to evolve their offering to meet customers’ needs,” he said. “The good news is that our operators are eager to embrace this challenge. Focus on technology In the food industry, Australia has already jumped on the **home delivery app revolution**, with companies such as **UberEATS, Foodora, HelloFresh, Deliveroo and MenuLog** bursting onto the scene, with great success. **Quickly and easily**, office worker lunch orders, healthy pre-prepared dinners and guilty pleasure desserts, are brought to shoppers' doors. **Technology is providing a platform** for suppliers and retailers to better service the shifting demands of today’s shopper. **In Europe,** **[Domino’s Pizza](http://thenewdaily.com.au/life/eat-drink/2017/04/02/food-on-the-go-drive-through-boost/)** has announced that it plans to use **self-driving robots** to deliver pizzas *(looking at flights over there, right now).* **On this side of the world**, **of course the big question for Australian supermarkets is whether (or indeed when)** [**AmazonFresh** will enter the Australian market](http://www.ausfoodnews.com.au/2017/03/15/amazonfresh-signal-of-entry-to-australia.html)**, and really shake things up for the grocery sector.** I suppose we'll have to watch this space... Over to you If you're interested in reading up on the grocery industry too, click the button below to download our free report: Does Amazon spell the end for Coles & Woolies? Fresher Food Faster.**[![Download Now](https://hubspot-no-cache-ap1-prod.s3.amazonaws.com/cta/default/2518731/4027d412-14d7-4d68-89f0-996048aeedf7.png)](https://hubspot-cta-redirect-ap1-prod.s3.amazonaws.com/cta/redirect/2518731/4027d412-14d7-4d68-89f0-996048aeedf7)** **Discover:** \> The e-commerce landscape in Australia vs. other markets. \> The online grocery revolution. Benefits & expectations. \> Growth drivers & challenges for Australian online grocery. \> The outlook. The future of Australian online grocery. If you liked this article please share --- #### read it, love it, share it. about the author ### [Sarah Kneebone](https://www.playinnovation.com.au/blog/author/sarah-kneebone) Sarah is PLAY’s go-to content writer with a passion for marrying creativity and communication with clever strategy. A former marketer with PLAY and for international brands such as QBE Insurance and General Motors, Sarah moved home to the UK to raise her little family and start a health coaching business. Luckily for us, she continues to share her talent for the written word with the team in Australia. ###### ask the author ### categories [the art of failing forward into successful NPD innovation](https://www.playinnovation.com.au/blog/failing-forward-into-successful-npd-innovation) [create a triple win by trying NPD “yes, and” with retail buyers](https://www.playinnovation.com.au/blog/create-a-triple-win-by-trying-npd-yes-and-with-retail-buyers) [recession proof: ramping up innovation during an economic downturn](https://www.playinnovation.com.au/blog/recession-proof-ramping-up-innovation-during-an-economic-downturn) [listen or lose! the consumer-led way to avoid new product disaster](https://www.playinnovation.com.au/blog/listen-or-lose-the-consumer-led-way-to-avoid-new-product-disaster) [an action plan for FMCG businesses to avoid the ACCC’s campaign against greenwashing](https://www.playinnovation.com.au/blog/action-plan-avoid-campaign-against-greenwashing) [wins & woes in online grocery shopping: the experts weigh in](https://www.playinnovation.com.au/blog/wins-woes-online-grocery-shopping-trends) ### recent posts [The PLAY team’s top product picks for 2024](https://www.playinnovation.com.au/blog/plays-2024-product-picks-0) [smart choices in AI: how to evaluate consumer research AI tools](https://www.playinnovation.com.au/blog/smart-choices-in-ai) [the art of failing forward into successful NPD innovation](https://www.playinnovation.com.au/blog/failing-forward-into-successful-npd-innovation) ### play perspectives [get to market faster with innovation sprints](https://www.playinnovation.com.au/blog/get-to-market-faster-with-innovation-sprints) [reaching new highs: Australia's cannabis industry](https://www.playinnovation.com.au/blog/australia-cannabis-industry-excerpt) ## 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