Small grocery stores must implement strong marketing strategies that focus on lower prices in order to compete with the supermarket duopoly, according to online business directory TrueLocal.com.au.

TrueLocal conducted a survey with research firm CoreData to determine what factors most influence where Australians do their grocery shopping. It found convenience and location is the number one factor that most influences where people do their grocery shopping, according to almost half (49 per cent) of respondents; just over one quarter (28 per cent) of respondents said the price of items was the number one factor influencing where they go grocery shopping; overall shopping experience (space to move, product layout) and availability of items were both selected by 10 per cent of respondents as the most influencing factor of where they go grocery shopping.

Editor of TrueLocal.com.au, Myles Wearring, comments on the results of the survey saying: "The two factors that most influence where Australians do their grocery shopping are locality and price. While corner stores can't get any more local and convenient for shoppers, price becomes the key factor in differentiating local stores to the bigger grocery chains.

"While it's easier for the big stores to offer discounts and market themselves, the little guys have to get in on the act. If they can offer a couple of discounted products a week and market them to the local neighbourhood, shoppers are more likely to go there."



Australian Association of Convenience Stores' State of Industry Report 2010 highlights

• The sector annual turnover is $16.5 billion
• Each store serves an average of 700 customers a day
• Merchandise spend increased in 2009 by 8.1 per cent from 2008
• Growth categories are food, fresh bakery goods and coffee, energy and water beverages, health and beauty products
• Busy providers represent 30 per cent of all shopping in this sector
• Nearly 80 per cent of customers planned for their in-store purchases and kept the spend in line with intention
• Product availability is the most important aspect for shoppers
• Sixty-six per cent of retailers are confident of business growth in 2010
• Seventy-eight per cent of surveyed retailers believe the economy and large chain competitors are having a negative affect
• Eighty-nine per cent of retailers believe the Government stimulus package had a positive impact
• The sector finds it hard to source suitable staff (78 per cent) and has on average a 36 per cent annual staff turnover
• Forty-five per cent of shoppers still do not notice promotions in or outside the store.
• Shoppers who purchase items on promotion buy 46 per cent above the average
• Twenty-two per cent of students bought on promotion but 71 per cent noticed promotions in stores
• The average spend from someone purchasing on promotion is 10 per cent above the average
• Franchised stores were 15.25 per cent of report respondents