CONVENIENCE IN THE YEAR 2030

August 15^th , 2017: It’s 2030. You drive into the local convenience store to fill up – high efficiency liquid fuel on the left, electrical vehicle plug-ins on the right. You head into the store, through the recycled timber auto doors, to discover a food and wine tasting. A loyalty promotion pops up on your smartwatch: today’s seasonal special is locally sourced farm fresh chicken.
So you tap your watch, grab dinner for the family, and tell the store operator you’ll see her tomorrow morning for a drive through coffee on the way to work.
Truth is, according to Australasian Association of Convenience Stores (AACS) CEO Jeff Rogut, there’s no way of telling what the convenience stores of 2030 might look like – but none of the above is out of the question.
“So long as the convenience industry’s commitment to innovate continues, the landscape may change even more drastically over the next decade,” Mr Rogut said.
“Our challenge is to maintain our value proposition amid ever-changing technology and emerging consumer generations. This means adapting to change, attracting new customers, and re-framing threats such as increased Government regulation, into opportunities to introduce new products and services,” he said.
The AACS recently commissioned its most forward looking and comprehensive research project to date, Convenience 2030, undertaken by the Australian Consumer, Retail and Services (ACRS) research unit at Monash Business School. 
The research involved extensive interviews with convenience leaders across the world to identify the key changes, trends and opportunities for the convenience industry in the lead up to the year 2030.
While the consensus seemed to be that, given the ever-shifting technology landscape, evolving consumer behaviours and population characteristics, the future for the industry is difficult to predict. But some key themes emerged.
“The research highlighted the opportunity and importance for our industry to establish new strategic partnerships, be it with fresh food producers, niche diet providers, alternate fuel companies, electric or driverless car companies, delivery service providers, or loyalty programs,” Mr Rogut said.
“Convenience stores will also need to focus on attracting new customer segments to ensure they remain a pillar in local communities. Our customer base today is largely male-dominated, so an opportunity exists to adapt our offer to encourage more women seeking fresh, healthy food and safe environments to our stores,” he said.
Millennials are another increasingly important target market for the industry. The following quote is from the managing director of a North American convenience chain: “Just as millennials are becoming more educated, they’re entering the middle class, so they have disposable income. They’re also being led by their mobile devices and the influences of their peer group, who are all talking about healthy and ethical food, so that trend is definitely translating into an enhanced offer inside and outside the store.”
As well as providing a comprehensive picture of the current and future state of the international convenience sector, Convenience 2030 details a series of ‘planned quick wins’ accessible to the industry, such as self-service, beacon devices and destination drivers.
It also outlines ‘planned innovations’ which could be just around the corner, such as operational automation, predictive systems and targeted promotions.
A key takeout, according to Mr Rogut, is that the future of the convenience industry in Australia looks bright, with opportunities aplenty despite the challenges to come.
“It will be fascinating to see how the convenience industry evolves through to 2030. The AACS previously commissioned the Convenience 2020 report in 2011, and the drivers and forecasts made then have largely come to fruition,” Mr Rogut said.
“As you enter the store of the future, you might pass the local delivery driver on their way to a customer’s house. You might find a large selection of private label products ecologically sourced and sustainably packaged to choose from. You might see people interacting with augmented reality entertainment options as you make your choice. The possibilities are endless.
“But while there is a vast array of drivers which will be necessarily impact our industry, re-shaping it in expected and unexpected ways, the one constant that will always hold us in good stead is an unwavering focus on the customer, and providing the most complete and convenient service possible,” he said.
Perhaps it’s the director of a major European convenience store chain who sums it up best: “People today operate on a short-term cycle, in terms of whether they want to be fed, have a drink, send or collect a parcel, or pay a bill. They generally want to do it quickly and efficiently, and convenience stores enable them to do that.”
The AACS Convenience 2030 report highlights is now in the Members section of the AACS Website.
The full report is available free to all AACS members – just send an email to jeff@aacs.org.au for your copy. 
The report is available for purchase for $3950 for non-members through AACS. Contact Jeff Rogut for further information.