2 0 1 P R E S E N T E D B Y J E F F R O G U T 8 B R E T T B A R C L A Y
2 0 K E Y H E A D L I N E S 1 I N D E P T H A N A L Y S I S C A T E G O R Y 8 P E R F O R M A N C E
I N T R O D U C T I O N A C K N O W L E D G E M E N T S Providing Scan Data and Commentary Sponsors Producing Report AACS Retailer Members AACS Suppliers Members Providing Market Providing Shopper Performance Insights
A A C S R E TA I L E R R E TA I L E R S C A N S H O P P E R D ATA M E M B E R S P R O V I D E D ATA P R O V I D E D P R O V I D E D BY C M A P E R F O R M A N C E D ATA BY I R I M A R K E T E D G E I N C LU D I N G TO S U P P O R T Overall Sales & Category Industry Overview which CMA Shopper Report 2018 includes non AACS Performance - members - CMA Shopper Matters Community Category Margin - 2018 State Performance - METHODOLOGY Fuel Measures - Transactional Data A L L D ATA I S T H E N C O M P I L E D B Y C M A
Announce the sale of the fuel Public Listing making business to EG after it the second large BP pulled out of deal fuel operation to (finalised April 2019) list on the ASX KEY INDUSTRY ANNOUNCEMENTS IN 2018 Demerger from Announce distribution Wesfarmers creating a single alignment and Woolworths E X P L R E identity on the ASX as part of Rewards Programme Coles Group
KEY INDUSTRY HEADLINES Growth Sales Margin +2.4% $8.6bn 33.4% +1% in 2017 $8.4b in 2017 33.5% in 2017
KEY GROWTH CATEGORIES Hot Beverage Take Home Food On the Go Food Tobacco +14.6% +10.1% +9.9% +6.4% $36m $13m $53m $204m
INDUSTRY COMPARISON P&C Packaged Grocery +2.4% +3.1% C H A N N E L G R O W T H Liquor Pharmacy Total Retail +3.0% +2.9% +3.2%
Growth 2017: 6412 +3.6% P&C STORE 2017 +2.1% NUMBERS 6644
KEY FUEL HEADLINES Average Price Litre Per Transaction Cost of Fuel Theft +11.3% -2.6% +4.4% $1.42 Per Litre 2017 +1% $169 Per Store Per Week
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PERFORMANCE DASHBOARD Fuel Litres Per Growth Margin Store Numbers Transaction -2.6% +2.4% 33.4% +3.6% 2017 +1.0% Down -0.1% 2017 +2.1% 2017 -1.1% Merchandise Average Transaction Shopper Visits Items Per Transactions Value per Week Basket +1% $9.90 2.7 2.1 483 Per Day Flat 2017 2.6 2017 1.9
FOOD & BEVERAGE NON-FOOD $3.8b $4.8b SALES 2017 $3.7b 2017 $4.7b CATEGORY FOOD NON-FOOD PERFORMANCE +3.0% +1.9% 2017 +2.5% 2017 -0.1% GROWTH
Growth Sales +2.4% $8.6b AN INDUSTRY 2017 +1.0% 2017 $8.4b WITHOUT TOBACCO Tobacco growth includes G R O W T H Without Tobacco Without Tobacco Government Regulated tax excise increase of 12.5% in $5.2b FLAT September 2018 2017 $5.2b 2017 +1.0%
PERFORMANCE TREND 7 Industry Performance 6 Food & Beverage 5 Non Food 4 3 2 1 0 -1 2015 2016 2017 2018
CATEGORY 2018 2017 ACTUAL SHARE 2018 2017 VALUE VALUE GROWTH YA GROWTH GROWTH NON-FOOD ($000,000s) ($000,000s) ($000,000s) $4.8b TOBACCO 3389 3185 204 39.4% 6.4% 3.4% GROCERY 210 210 0 2.5% 0.0% 17.5% 2017 $4.7b GEN. MERCHANDISE 447 464 -17 5.2% -3.7% 19.6% CAR ACCESSORIES 151 159 -8 1.8% -5.1% -7.0% NON-FOOD PRINTED MATERIALS 117 132 -15 1.4% -11.2% -10.2% +1.9% COMMUNICATIONS 291 335 -44 3.4% -13.0% -10.7% 2017 -0.1% TRAVEL TICKETS 182 212 -30 2.1% -14.0% -13.5% 5 of the 7 Non-Food Categories are in decline while Grocery is flat versus 2018
CATEGORY 2018 2017 ACTUAL SHARE 2018 2017 VALUE VALUE GROWTH YA GROWTH GROWTH ($000,000s) ($000,000s) ($000,000s) FOOD HOT DISPENSED BEV. 256 220 36 3.0% 14.6% 16.1% $3.8b TAKE HOME FOOD 144 131 13 1.7% 10.1% 18.0% ON THE GO FOOD 591 538 53 6.9% 9.9% 13.3% 2017 $3.7b PACKAGED BEV. 1806 1785 21 21.0% 1.2% 2.5% SNACKFOODS 194 194 0 2.3% 0.7% 2.1% FOOD CONFECTIONERY 483 483 0 5.6% 0.1% -3.2% +3.0% MILK 144 146 -2 1.7% -1.4% -4.6% 2017 +2.5% BREAD 38 40 -2 0.4% -3.9% -4.8% ICE CREAM 154 162 -8 1.8% -4.8% -2.4% 6 of the 9 Food Categories are in growth which is up from 4 of 10 in 2017
TOP 5 GENERATING AND DECLINING CATEGORIES $204m Growth Decline $53m $36m $21m $13m $-8m $-15m $-17m $-30m $-44m Tobacco On The Go Hot Dispensed Packaged Take Home Car Accessories Printed General Travel Tickets Telecom- Food Beverages Beverages Food Materials Merchandise munications Sales Dollar Value
PERFORMANCE TREND – CATEGORY GAINERS 30 Packaged Beverages 25 Tobacco 20 On the Go Food Take Home Food 15 Hot Dispensed 10 Beverage 5 0 2015 2016 2017 2018 Dollar Sales % Growth
PERFORMANCE TREND – CATEGORY DRAINERS 25 General Merchandise 20 Car Accessories 15 Printed Materials 10 Telcoms 5 Travel Tickets 0 -5 -10 -15 2015 2016 2017 2018 Dollar Sales % Decline
70% 21% 18% 2018 73% 2018 22% 2018 19% SHOPPER CATEGORY PENETRATION 18% 17% 7% E X P L R E 2018 17% 2018 18% 2018 7%
STORE STATS AND STATE GROWTH QLD V I C T O R I A W E S T A U S T R A L I A WA remains the fastest growing WA indexation is -12 % +1.7 +1.5 -12 % state both by the strongest +100 % +0.9 +1.8 population and at double growth rate population growth NSW SA +60 % +0.8 +0.1 -87.5 % +1.5 +2.4 S O U T H A U S T R A L I A & Q U E E N S L A N D Key TAS VIC SA and Qld growth Population rate below population P&C growth Index +1.2 +2.1 +75 % +2.2 +3.8 +73 %
ONGOING THREATS TO CONVENIENCE E X P E C TAT I O N S G O V E R N M E N T R E G U L AT I O N as stand-alone small formats expand e.g. Woolworths Tobacco, Liquor, Metro and Sugar F O O D O N T H E S U P E R C O N V E N I E N C E O F P R O M O T I O N A L G O D E L I V E R Y E F F E C T I V E N E S S Competitive threats and Shoppers wanting it Struggling Categories, Day expanding offers now Part Promotions
Amazon Go to Accept Cash The change comes as the retail giant addresses potential barriers at its cashless convenience stores. April 12, 2019 SEATTLE – Amazon will add other payment mechanisms, including the ability to accept cash, to its Go locations, CNBC reports. In March, Steve Kessel, senior vice president of physical stores for Amazon, informed workers that the addition of alternative payment methods, including cash, is a move to address “discrimination and elitism” at Go stores. Kessel pointed to the additional payment options Amazon has put in place online, such as a test program that lets users pay with SNAP benefits and Amazon Cash, which allows users to upload money to their digital accounts at local stores like 7-Eleven. “We’re in earlier days, but it’s an important focus for us and we’ll continue to extend those methods with our stores,” Kessel said. Amazon hasn’t revealed a timeline for implementing those changes. An Amazon spokesperson said customers will “check out, pay with cash, and then get your change. … We are working to accept cash at Amazon Go.” The move comes as more states and cities mandate retail outlets must accept cash as payment. This year, New Jersey and Philadelphia prohibited cashless stores. Massachusetts has had a law on the books for years that requires retailers to allow customers to pay with cash. A New York City councilman introduced a similar bill last year, while San Francisco also is considering a cashless ban.
From (today) To (tomorrow) U S S TAT E O F I N D U S T R Y Fuel provider Energy provider S U M M I T I N S I G H T S Commodity-driven business Service-driven business CHARLIE Limited interaction Best-in-class customer experience to MCILVAINE with customers create a destination that delivers (less than 4 minutes) convenience in products, food and C h a i r m a n & C E O o f C o e n O i l services S O I 2 0 1 9 : H a l f O f T h e Offers and promotions Tailored and personalized experiences I n d u s t r y I s ‘A 1 0 - y e a r - o l d are one-size-fits-all and services B u s i n e s s M o d e l ’ E v o l v e n o w o r g o t h e Limited assortment (coffee, tobacco, Hyperlocal or differentiated w a y o f B l o c k b u s t e r : other channel staples) assortment c - s t o r e l e a d e r Traditional buying channels Omnichannel, frictionless options
FUEL 54% +11.3% AV E R A G E P R I C E F U E L O N LY S H O P P E R S 2017 +10.1% 2017 48% -2.6% 23% +4.4% F U E L L I T R E S P E R F U E L T H E F T T R A N S A C T I O N M I S S I O N 58.5m 2017 -1.1% 2017 25%
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S A L E S Growth rate +$36m in Sales slowing at category and +$26m in $256m matures GP 2017 $220m Visit frequency Average Retailer @3.5times per Margin 54.8% HOT week G R O W T H DISPENSED BEVERAGES Spend per basket Quality is the +14.6 % 37% below main driver Channel average 2017 +16.1%
S A L E S Higher female +$33m of value $144m participation in in the last the category 2 years 2017 $131m 47% of Shopper Above Average TAKE purchase as a Spend of $15.90 G R O W T H meal for now HOME FOOD per basket +10.1 % Average items Margin dollar purchased is growth flat 3.7 per visit 2017 +18.0%
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