Abstract
Convenience retailing in South Africa is currently experiencing a unique evolution due to the inception of modernised garage convenience stores. Little is known about the actual impact this has had on the fast-moving-consumer-goods market. Furthermore, even less research has been targeted at the young consumers growing up in this digital and more demanding Millennium.
This report investigates the role that convenience stores play in the market place with regards to children. It examines the various influences that affect a child’s preferences in store patronage and what retailers can do to maximise their offerings to young consumers. Garage convenience stores and traditional cafés are the primary store targets whilst children aged 9 to 12 (The Millennium Generation) are the specific consumer targets.
The research results revealed how children have become more street savvy and that retailers cannot easily pull the wool over their eyes. Kids have become more knowledgeable and demanding, making it that much tougher in the convenience store industry. The fact that younger consumers also have more spending power, are extremely safety conscious and are aware of kid discrimination adds to the pressure. Surprisingly, cafés seem to be more popular with the Millennium Generation than one would initially think.
The empirical study verified these findings, leading to a proposed strategic agenda for guiding convenience retailers on how to approach the Millennium Generation and strengthen consumer ties. Consistency, uniformity, loyalty programmes and pricing schemes are some of the typical areas that are addressed.
With the implementation of this study’s suggested recommendations, convenience stores should be able to appeal to the Millennium Generation and ensure a healthy mutually advantageous relationship. Failing to heed the importance of the Millennium Generation will inevitable lead to serious business complications in the future.
Prof. C.J. Jooste