CANBERRA, Australia – Australia’s convenience industry is one of the strongest in the world, with the industry recording growth of 4.5% in 2016 to outperform the grocery channel for the fifth straight year. According to the AACS State of the Industry Report 2016, the Australian convenience industry is now valued at $8.3 billion (excluding fuel sales), reinforcing its importance to the national economic picture. An additional $353 million in sales were generated over the course of the year.

Value growth in the convenience channel outpaced that of pharmacy (4.4%), liquor (3.3%) and grocery (1.2%) in 2016, underlining the robustness of the convenience industry in Australia.

Australasian Association of Convenience Stores (AACS) CEO Jeff Rogut said the strong result is a testament to the focus on innovation from leading convenience operators. “The short and long term outlook for the convenience industry in Australia is undeniably positive and the 2016 results underline the value proposition of convenience stores in the Australian retail landscape,” he said. “Ensuring a customer-first approach that optimizes the performance of stand-out categories such as food, coffee and beverages will underpin a bright future for the convenience channel.”

The AACS State of the Industry Report shows that food accounted for 44% of convenience stores sales in 2016, and 59% of value growth over the course of the year. “A more progressive food offering represents the future for the convenience industry as Australians, particularly younger people, take a more ?exible attitude to when and where they make food purchases,” Rogut said.

Based on retailers contributing to the AACS State of the Industry Report, fuel sales volumes grew by 5.9% in 2016, up from 1.8% in 2015 and 3.5% in 2014. “Fuel is a category perhaps not seen as the most immediately suited to innovation, which actually makes it a clear target for new ideas and approaches,” he said.