Coles Supermarkets yesterday revealed a fresh approach to small format it says will target c-stores like 7-Eleven. This was inevitable given how closely Australian supermarkets follow UK trends. UK supermarkets have been doing this for years, introducing small format stores in high streets, competing with c-stores and local newsagent businesses.
Walking down the main street in UK cities and towns you see three, sometimes four, supermarket brands operating small format businesses.
This is one of the reasons I say a c-store model for newsagents is not a smart move. Supermarkets are well-resourced.
Newsagency businesses are too small and too under-resourced to compete with the players already well established in the convenience space. I am certain newsagents cannot win against the power of the slurpee and the might of Coles and Woolworths.