In Australia, bread sales at gas stations and convenience stores has steadily declined over the past 15 years. There are a number of factors contributing to the decline. Convenience stores and gas stations do not have the demand to keep suppliers interested. Larger grocery stores also slash prices to levels convenience stores can’t match. Because they have trouble maintaining relationships with suppliers and lack customer demand, the bread quality often suffers. Convenience stores still hold a small share of the market, and if they can find a way to always offer fresh bread at good prices, they may be able to stop losing customers and win some back.
- The supermarket sector continues to dominate the bread market, while the convenience sector has been continuously declining in recent years.
- Despite the decline of bread in convenience, the total value and profit margin of selling bread continue to remain high.
- Attempts to bolster bread sales in convenience have been futile, as suppliers are not as willing to fulfill smaller orders, leading to bread with less than ideal freshness.
“Roy Morgan Research industry communications director Norman Morris said that despite recent news about the elevated salt content of some bread products, the number of Australian grocery buyers purchasing bread in an average week had grown by almost half a million, from just under 10.5 million to nearly 11 million in the past 12 months.”