The highly anticipated arrival of Amazon to our shores have triggered a wave of alarm bells ringing across the local businesses and reactions from across all sectors. The entrance will be felt not only by your traditional brick-and-mortar businesses and online retailers, from fashion to furniture, groceries to electronics, but also the long-established logistics and distribution sector.
Convenience stores offer consumers quick, easy access to a range of everyday items – but so will Amazon. Now is the time for the convenience sector to embrace change, rethink offerings and innovate to stay competitive and become even better at what they do best, being convenient, quick and accessible.
Here are three ways on how to start:
- Abolish your payment restrictions
Australia is fast moving towards a cashless society and businesses are already failing consumers by still restricting their payment methods. According to a 2017 survey commissioned by Mastercard, 4 in 5 consumers resent the restrictions they encounter when opting to pay by card and 56 per cent have said they would choose to visit a different store that could offer a zero dollar minimum spend.
These statistics cannot be ignored and indicate an alarming impact on revenue. Enforcing a minimum spend on card payments could be the same as closing off your store to over half of your customers. The small costs incurred for processing card payments in comparison to this potential loss of revenue should be considered negligible. This is another way modern convenience stores can differentiate themselves from the “old corner stores” who business model has not changed in decades.
- Take a customer-centric approach
The AACS Convenience 2030 study undertaken by the Australian Consumer, Retail and Services (ACRS) Research Unit at Monash University, revealed that the convenience customer base is male-dominated, so opportunities exist to attract more females by offering healthy food and a safe environment to shop in.
In the same breath, millennials are becoming more educated and entering the middle class with a disposable income, with greater awareness and preference of consuming ethical and healthy products. Convenience sector leaders need to adapt their merchandising mix to meet this demand and capitalise on the opportunities of the segment.
- Make connections
All businesses big and small are going to feel Amazon’s impact. Now is a crucial and mutually beneficial time to formulate strategic partnerships. Explore fresh and local producers, as well as niche diet providers to increase your healthy and ethical options. Partner with alternate fuel companies, electric or driverless car companies, delivery service providers or loyalty programs. All of these options will only increase your offerings to consumers.
It’s time for businesses, stores and the government to collectively take action. To do nothing could be an ignorance that cannot be afforded.
Jeff Rogut, CEO, Australasian Association of Convenience Stores (AACS)
