Growing optimism in a diversed convenience sector

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Four out of five sectors in the Swedish convenience & fast food sector have increased their sales this year.

But minimarkets and service stations have a decreasing trend.

”The industry’s goal is to greatly increase product sales over the next six years so we still have much work ahead of us,” says Bengt Hedlund, CEO of Swedish Convenience & Fast Food.

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Convenience trade index from the Swedish Convenience & Fast Food shows that sales, measured in comparable units and in current prices, increased by 0.1 percent in the second quarter of 2015. All sub-sectors of the Convenience index except Mini markets showed positive sales growth in the second quarter of 2015. Service Stations trend was weak, however, and landed at 0.1 percent compared to the same quarter last year.
Sub-sectors Café, Games & Tobacco and Fast Food exhibited however, stronger growth rates. The sub-sectors’ sales increased by 3.4 percent, 2.3 percent and 1.8 percent. Mini market sales fell by 6.8 percent.

”As expected, the service trade sales growth were slightly lower in the second quarter, as the industry faced very strong comparatives from the previous year. Over the first half, we can see that four of the five sub-sectors have increased their sales. The industry’s goal is to greatly increase product sales over the next six years so we still have much work ahead of us,” says Bengt Hedlund.

Service dealers’ optimism increased by three percentage points between the first and second quarter of 2015. This despite the fact that the service trade sales grew cautious 0.1 per cent. The increasing optimism in the second quarter is mainly explained by the chain actors becoming more optimistic about the future. Confidence in the future of the individual traders, however, decreased between quarters. Confidence in the future of the whole industry is now at 28 percentage points, which means an excess of 28 percent of optimists over pessimists.

”The convenience sector’s growing optimism forecasts a good end to the year. We also see that households have a spending power and that their views on the private economy is stronger than normal. Now is the time for convenience stores to attract consumers to the stores with a strong offer,” says Bengt Hedlund, CEO of Swedish Convenience & Fast Food.