Consumers in America are Increasingly Purchasing More Household Supplies at Convenience Stores (Gas Stations)
Rewritten Article:
American consumers are feeling frazzled and stretched thin. But there's a glimmer of retail relief right at their fingertips – at gas stations.
Retailers like Circle K were among the lucky few who witnessed an uptick in customers flocking to their stores in March, as per Kantar Retail's monthly shopper tracking survey. Even Placer.ai, which uses mobile-device location data to track foot traffic, reported in December that "C-store" chains such as Kwik Trip and Buc-ee's saw a surge in the number of shoppers visiting their stores in 2024.
So why the sudden boost in business? Well, it seems convenience stores have wisely revamped their food and beverage offerings while keeping the prices competitive.
"As consumers become more mindful of their wallets, we offer a fantastic trade-down opportunity price-wise, yet not on quality," said Darren Rebelez, CEO of Casey's General Stores (CASY), during a mid-March conference call.
About four-fifths of the more than 150,000 convenience stores in the US sell fuel, according to the National Association of Convenience Stores. These smaller outlets, attached to gas stations, stock everyday essentials like milk, bread, pasta, fresh produce, and diapers, along with a range of non-essential items such as sunglasses, shampoo, cosmetics, and toys.
Around 80% of the items purchased at these gas station stores are consumed within the hour, reports NACS. However, many shoppers have been filling their tanks and loading up on pantry staples like bread or eggs for their next meal. Sales of tobacco products, the largest convenience-store category, saw a decline last year, while sales of frozen food, wine, and deli and dairy products all rose.
Young shoppers and parents with children are particularly drawn to convenience stores due to their combination of selection and convenience.
"If we imagine ourselves as younger parents trying to avoid the hassle of navigating a traditional grocery store – with its crowded parking lots, pushing carts, sprinting through vast stores, and waiting in long lines – then convenience stores provide the ultimate stop-and-go experience," Julie Craig, Kantar's vice president of shopper insights, explained.
Non-fuel sales at Casey's, which boasts over 3,000 locations, increased by more than 15% in its latest quarter due to higher sales in general merchandise, as well as prepared food such as hot sandwiches and baked goods.
"We sell basic daily necessities – items that consumers need but don't view as luxuries," Rebelez said. "When people are forced to tighten their purse strings, many of our offerings would not be considered discretionary by our customers."
Order ahead, pay at the pump, or have groceries delivered to your car – convenience stores are embracing technology to create a more restaurant-like shopping experience, making visits even more appealing for busy consumers. Plus, with higher fuel prices leading more drivers to pull over for a pit stop, convenience stores are well-positioned to cash in!
Tips@our website
- Running low on milk or need a snack in a pinch? Visit your nearest convenience store for an affordable and quick fix!
- Convenience stores have been upgrading their foodservice offerings, making them a growing destination instead of just a quick stop.
- Consumers are seeking value; convenience stores, with their improved food and affordable prices, offer a great trade-down opportunity.
- General merchandise and prepared food sales have witnessed a significant jump. Hot sandwiches, baked goods, and more are driving purchases at stores like Casey's.
- Technology integration in convenience stores has been on the rise, providing a more streamlined shopping experience for time-conscious consumers.
- High fuel prices can lead to an increase in convenience store sales as customers make more trips to refuel their vehicles and grab essentials.
- Kwik Trip and Buc-ee's, among other convenience stores, experienced a surge in shoppers in 2024, driven by their competitive food and beverage offerings.
- Contrary to a decline in tobacco sales, sales of frozen food, wine, and deli and dairy products have all risen in these smaller outlets.
- Young shoppers and parents find convenience stores appealing due to their combination of convenience and selection, offering a stop-and-go experience.
- Technology integration in convenience stores, such as order ahead, pay at the pump, and delivery services, is providing a more streamlined shopping experience for busy consumers.
- With higher fuel prices leading more drivers to make pit stops, convenience stores are well-positioned to cash in, especially with improved foodservices that have made them a growing destination.
