AACS 2008 State of Industry Report

AACS has now released the State of Industry Report 2008. It’s release coincides with some relevant economic data. On Monday a study by The Australian, using unpublished official data ,showed that the GFC has forced Australians to shift some of their consumption back to home base. Spending on motoring fuel was at historic lows at just 2.4 per cent of household expenditure in the June quarter national accounts (down from 3.1% for the same period in 2008), while the share that went to telecommunications was 0.1 points higher at 2.5 per cent. It is the second occasion this decade the mobile phone has cost more consumer dollars than petrol, following a similar run between 2001 and 2004.

The swings and roundabouts suggest the typical family put off the purchase of a new vehicle in 2008-09, drove their existing car less often and used the savings indoors on home-cooked meals and long nights in front of the flat screen television. The lower spending on petrol comprises both a short-term shock and a longer-term trend. Consumption has now fallen in three of the past four financial years. Petrol's share of the household budget is now almost half what it was a generation ago, when it claimed 4.4 per cent of total spending in the June quarter of 1984. At that time, telecommunication services were a mere hobby at 1.3 per cent.

This facts add to the information in the AACS State of Industry Report for the period to 31 December 2008 which is available on the AACS website in downloadable format. In it 43% of respondees commented that the economic downturn impacted their business (although 50% said they were pleased the government put the Stimulus package in place) suggesting more trips made with a potentially lower fuel transaction size. Carwash and car care product expenditure was also down. The report goes on to reflect how this change in consumer behaviour had an impact on convenience store product purchasing for those stores attached to petrol forecourts.

The report also suggests a significant dissatisfaction with governments across Australia with 63% of respondees disagreed with the assertion that government (in general) is providing fair support to our business. This supports the view that there is still much for AACS to do in liaising with governments, state, territory and federal to shape the business environment in which C-Stores operate. On this subject the Tobacco Products Control Bill 2008 passed the WA parliament late last week, and is awaiting royal assent. Here is a link - http://www.parliament.wa.gov.au/web/newwebparl.nsf/iframewebpages/Bills+-+Current 

Last week I attended an economic update from Craig James Chief Economist at Commsec. He was optimistic about the Australian economy and considered that the GFC crisis had passed us by to a large degree. Some of his predictions for the end of 2010 are as follows: Economic Growth 2.5% Inflation 2.75% Unemployment 6.5% Cash Rate 4.75, Share Market 4,900 and $AUD buys $US0.91 cents. Certainly we should see a better Q4 (Oct to Dec) than in 2008 and hopefully the xmas period and summer holidays will see Australians spending money on the products and services that we provide.

To access a copy of the 2008 AACS State of Industry Report please click the link below. The PDF file is 7.14MB is size so please be patient when downloading as it may take a minute of two. The file is password protected and is for AACS members access only. For your members passowrd or if you have any problems accessing the report please contact Troy on 1300 162 633 or e-mail troy@aacs.org.au

2008 AACS State of Industry Report

Regards 

Sheryle Moon 

Executive Director