1. AACS COMPETITION Nikki Novakovic Joshua Sumura RMIT University Convenience Store Innovation

2. .. CONVENIENCE STORES IN AUSTRALIA 16.7% Growth 2008-13 AU 1.6 Billion 2013 1,206 Number of outlets across Australia in 2013 -4.3% Projected growth 2014-18 AU 1.6 Billion Estimated in 2018 958 Estimated number of outlets in 2018 CURRENT SITUATION FORECASTS SOURCE: Euromonitor, 2013

3. .. THE PRESSURES Competitor Advantages  Competitive pricing  Able to pass cost savings to consumers  Larger scale of product offerings  Strong loyalty programs  Increasing hours of operation  Low technology and system usage  Consumer negativity towards high prices  Downward trending profit margins  High level of competition The Pain Points

4. .. CONVENIENCE STORE DRIVERS 24/7 Availability Lower travel cost and ease of parking Wide range of goods & services Speedy shopping Location Strong relationships with suppliers Competitive Advantage Future Drivers 24/7 Availability Reducing consumer effort Leveraging emerging technology Demand for 24/7 Demand for product expansion

5. .. CHANGING CONSUMER TRENDS  Time-poor consumers drive industry growth  Mobile and tech driven society  More impulse purchase driven  Desire for new products  Need for convenience  Seek empowerment  Look for incentives Key Trends

6. .. THE WAY FORWARD! Multi-transactional Touch Screen Kiosk Provides simplicity and convenience Integrated Mobile Application Connecting with consumers Novelty & Speciality Products Creating product differentiation

7. .. Water, electricity, phone, fines Integrated real-time payment solution Bill Payment MULTI-TRANSACTIONAL TOUCHSCREEN KIOSK Reducing consumer effort and increasing engagement through technological innovation Concerts, sporting events, movies Partnership with Ticketek Ticket Purchase Real time money transfer to any account worldwide (ANZ, NAB, PayPal) Partnership with banks and/or Western Union Money Transfer Multiple networks (Optus, Vodafone, Telstra) Self-printed recharge vouchers Mobile Recharge Vouchers

8. .. MULTI-TRANSACTIONAL TOUCHSCREEN KIOSK 4 services integrated in one touchscreen kiosk Customers make all payments at the kiosk Has integrated merchant technology Accepts cash and all major cards How it works Increased foot traffic 24/7 availability Simple and convenient Value-added service Competitive advantage targeting underserviced consumer market Additional revenue opportunities Benefits

9. .. Quicker and easier ‘wave the phone’ payment Secured and encrypted data Easy Payment System MY CONVENIENCE STORE – MOBILE APP Faster transaction speed, convenience and relationship building Loyalty discounts and rewards Special app holder deals Need-Based Rewards Store locations Trading hours Products and services offered Special deals Information Hub Track consumer purchases, habits, desires and motivations Social media integration Targeted Marketing

10. .. MY CONVENIENCE STORE – MOBILE APP Download the application and register an account Link a credit or debit card to get a unique code Pay by scanning the code over a merchant sensor Earn rewards through integrated incentive programs Customers offered short term deals to drive impulse purchasing How it works 24/7 connectivity with consumers Flexible and convenient Faster transaction speed Protected by a PIN number Security Increased loyalty Targeted advertisement and promotions Benefits

11. .. NOVELTY PRODUCTS Diversifying Australian culture is in demand for novelty and international products Holidays Halloween, Christmas Sporting events World Cup, Olympics, Australian open, Formula 1, Racing Entertainment events Concerts, movies Limited & foreign confectionery products Key themes: Increased foot traffic Differentiation Increased revenue and profitability Competitive advantage Value-added products Benefits

12. .. NOVELTY PRODUCT IDEAS

13. .. CALL TO ACTION In order to stay relevant and to drive growth, convenience stores must: Excite consumersIncentivise consumersEmpower consumers

14. .. INTEGRATED WAY FORWARD Novel Expansion of current product portfolio Integrated Mobile Application Multi-Channel Self-Serve technology In order to stay relevant and to drive growth, convenience stores must:

15. .. Thank You Any Questions?