Evolution of Forecourt Convenience Stores in South Africa - Nielsen

GLOBAL
CONVENIENCE
SYMPOSIUM
growing demand,
changing structures
Individual presentation
from session 1:
EVOLUTION OF FORECOURT
CONVENIENCE STORES IN
SOUTH AFRICA

EVOLUTION OF FORECOURT
CONVENIENCE STORES IN
SOUTH AFRICA
Jason Naicker
Associate Director of Retail Services,
South Africa

DEFINING THE
NIELSEN BASKET
Convenience
stores
have15%
share of the
NIELSEN
DEFINED
MARKET
FORECOURT
Convenience
stores have
4% share of
the NIELSEN
DEFINED
MARKET
Convenience
grows
annually at
13% vs. the
MARKET at
8%
Convenience
stores have
29% share in
the TOP 20
CATEGORIES
FORECOURT
Convenience
stores have
10% share in
the TOP 20
CATEGORIES

R14.8bn sales
driven through
FORECOURT
convenience
Over 5,000
forecourt
service
stations in SA
Over 3,000
forecourt
convenience
stores in SA
On average
consumers spend
almost
DOUBLE at
FORECOURT
convenience
stores than on
FUEL

BULK SHOPPING FREQUENCY
AVERAGES ONCE PER MONTH
Weekly
Every 2 weeks
Every month
Less often
Shopping frequency
3
3
14
15
13
12
2011
70
70
1.5 times
on average per
month
Base: All Supermarket shoppers (n=2516)
Ref: Q87. How often do you do your main grocery shopping, where you buy a lot of groceries, including all the essentials?

GREATER FREQUENCY FOR
TOP UP SHOPPING TRIPS
Regular top up trip
Daily
2 to 3 time a week
Weekly
Every 2 weeks
Every month
Less often
Never
1%
8%
5%
9%
23%
25%
% Agree
30%
7 times
on average per
month
Base: All Supermarket shoppers (n=2516)
Ref: Q88. How often do you do a regular top up shopping, where you buy a few things?

Consumer Panel Service -
3200 households
Increasing spend in mid to
higher income hh’s and
increased frequency in low
end hh’s, reduced basket size
Channels Used in P4W
% Used
the
Channel
Change
(2011 vs
2010)
Change
(2010 vs
2009)
Hypermarkets 29% 3%p 1%p
Supermarkets 95% 0%p 0%p
Spaza 47% 3%p 1%p
Vegetable Vendor 40% 1%p 8%p
Butcher 40% -1%p 5%p
Convenience Stores (Net) 23% 3%p 5%p
Modern Pharmacy 20% 2%p 4%p
Liquor Stores / Bottle Shops 19% -1%p 4%p
Department Stores 18% 1%p 6%p
Bakeries 14% 2%p 4%p
Cosmetics Shops 13% 1%p 4%p
Cash & Carry 11% 3%p -1%p
70
60
50
40
30
20
10
0
6
5
Occasions per
Buyer
R29
R41
Rands per
Occasion
8
Occasions per
Buyer
Defined Basket - Forecourts
R24
19 R17
Rands per
Occasion
7
Shopper Trends – 2510 Panel
Continually increasing penetration
7
Occasions per
Buyer
R30
R36
Rands per
Occasion
4
3
Occasions per
Buyer
Total SA LSM 1-4 LSM 5+6 LSM 7-10
LY TY
R32
R66
Rands per
Occasion

Cigarettes
Carbonated Soft Drinks
Air Time
Energy/Sports Drinks
Snack Products
Mineral/Spring Water
Bread
Chocolate Coated Lines
Sugar Lines
Ice Cream/Sorbet
Long Life Juice
Chewing Gum
Fresh Milk
Moulded Slabs & Bars
Magazines
Short Life Juice Excl Mixes
Dairy Fruit Mixes
Biltong
Biscuits
Contraceptive/Condom
Forecourts - Top 15 Value (Rmil) Ranked Categories
R 705
R 609
R 392
R 377
R 313
R 308
R 292
R 198
R 189
R 176
R 158
R 117
R 115
R 102
R 83
R 76
R 70
R 61
Contraceptive/Condom
Energy/Sports Drinks
Chewing Gum
Biltong
Disposable Lighters
Mineral/Spring Water
Air Time
Flavoured Milk
Chocolate Coated Lines
Eye Drops
Breakfast Bars
Ice Tea
Ice Cream/Sorbet
Cough Drops
Cigarettes
Sugar Lines
Magazines
Snack Products
Carbonated Soft Drinks
Long Life Juice
R 1,478
Forecourts - Top 15 Share Ranked Categories
13%
12%
12%
12%
12%
12%
11%
10%
10%
9%
8%
8%
8%
R 2,701
23%
21%
21%
20%
19%
29%
33%

ENGEN QUICK SHOP
DELIVERS ONE STOP CONVENIENCE
Partnership with Woolworths
enables retailer to deliver high
quality food at regular prices, 24/7

TOTAL BONJOUR!
COFFEE CHAIN PARTNERSHIP
Increasing traffic
to both store
formats

BP EXPRESS
BUILDING A RETAIL PARTNERSHIP
The second forecourt c-store to
align with a retailer after successful
Engen/Woolworths partnership

MORE STORES EMBRACING
LOYALTY PROGRAMS

CALTEX FRESH STOP
FRESH AND AFFORDABLE PRODUCE
Stores offer a variety of salads, smoothies and fresh dairy
products and have a grocery section that stocks everyday
items grocery at affordable prices

SASOL MY DELIGHT
NEW APPRAOCH TO “HOME COOKING”
Stores are strategically positioned
on major traffic and arterial routes
where traffic delays are common

SHELL SELECT
KEEPING IT SIMPLE
Sells typical c-store product offerings – cigarettes, coffee, airtime – but
also known for monthly combo promotions advertised at petrol pumps

COMBO DEALS

Thank You
jason.naicker@nielsen.com

CONTACT US FOR
MORE INFORMATION
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Sep 23 rd , London, Future of Convenience Conference
Oct 08 th , Las Vegas, NACS Show
Nov 04 th , Cologne, first European Convenience Show