Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market at a glance
- In a fragmented channel, c-stores balance local knowledge with national scale
- C-stores face different competitors in leading product categories
- In-store sales linked to what happens at the gasoline pump
- Tobacco still leads in-store, but slips in share
- Foodservice plays an even more prominent strategic role
- Other categories remain small, but opportunities for new services exist
- Growth in Hispanic population likely to benefit c-stores
- 7-Eleven remains a dominant force in the industry
- Big oil reducing number of stores
- Shift to franchised/licensed stores continues
- Well-established regional c-store players among the strongest brands
- Ads focus on basic c-store values
- Frequent shoppers are young and male
- Perceptions of food are improving, but still room for improvement
Insights and Opportunities
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- Convenience stores continue to evolve
- Foodservice becoming more important to sales and profits
- Still room for improvement
- Foodservice presents a range of strategic alternatives
- Reaching out to teens presents opportunity for growth
Inspire Insights
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- Corner Store
- What it’s about
- What we’ve seen
- Implications
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- Figure 1: Interest in various new products/services at convenience stores, by race/Hispanic origin, January 2009
Market Size and Forecast
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- Key points
- After years of strong growth, market slows considerably
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- Figure 2: U.S. sales of convenience stores, at current prices, 2003-13
- Figure 3: U.S. sales of convenience stores, at inflation-adjusted prices, 2003-13
Competitive Context
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- In a fragmented channel, c-stores balance local knowledge and national scale
- C-stores face different competitors in leading product categories
Segment Performance
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- Key points
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- Figure 4: U.S. sales of convenience stores, by segment, 2006 and 2008
Segment Performance—Petroleum
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- Key points
- Gasoline dominates sales, but may be losing power
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- Figure 5: U.S. sales and forecast of petroleum through convenience stores, at current prices, 2003-13
Segment Performance—In-Store Items
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- Key points
- In-store sales linked to what happens at the gasoline pump
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- Figure 6: U.S. sales and forecast of in-store items at convenience stores, at current prices, 2003-13
- Tobacco still leads but slips in share
- Foodservice plays an even more prominent strategic role
- Other categories remain small, but opportunities for new services exist
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- Figure 7: U.S. sales of in-store items in convenience stores, by sub-segment, 2006 and 2008
Market Drivers
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- Key points
- Convenience stores cater to a driving nation
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- Figure 8: U.S. Vehicle miles by road system, 2004-08
- Rising gasoline prices key to c-store sales increases
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- Figure 9: U.S. average price per gallon of gasoline, 2003-09
- Growth in Hispanic consumers likely to benefit c-stores
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- Figure 10: Population, by race and Hispanic origin, 2003-13
- Aging population may present a challenge for c-stores
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- Figure 11: U.S. population of adults aged 18 and over, by age group, 2003-13
Leading Companies
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- Key points
- 7-Eleven remains a dominant force in the industry
- Big oil reducing number of stores
- BP North America
- Exxon Mobil
- Shell
- Chevron Texaco
- The Pantry a dominant force in the Southeast
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- Figure 12: Number of U.S. stores and sales of leading convenience stores, by company, 2007 and 2008
- Shift to franchised/licensed stores continues
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- Figure 13: Leading c-store operators, share of U.S. stores franchised or licensed, 2007 and 2008
Brand Qualities
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- Key point
- Well-established regional c-store players among the strongest brands
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- Figure 14: Select regional convenience store chains, by number of stores, 2008 sales, and states of operation
- Spotlight: Wawa typical of strong regional c-store operations
- Customer service
- Fresh food
- Connection to the community
Innovation and Innovators
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- Key points
- Convenience stores continue to evolve
- New Cumberland Farms prototype puts focus on fresh
- Supermarket chains step up in convenience market
- Sheetz breaks into in-store dining
- Rutter’s Farm Stores score a hit with stir fry
Advertising and Promotion
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- Key points
- Overview
- 7-Eleven targets a variety of promotional tactics at young male customers
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- Figure 15: 7-Eleven TV ad, 2008
- Chains stress basic c-store values of convenience and variety of foods
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- Figure 16: Circle K ‘Built for speed’ TV ad, 2008
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- Figure 17: am/pm ‘Too much good stuff” TV ad, 2009
- Figure 18: Kwik Trip Magic Box TV ad, 2009
- Quality coffee also receives emphasis
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- Figure 19: Speedway Coffee TV ad, 2009
Usage
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- Adults
- Older adults least likely to shop convenience stores
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- Figure 20: Incidence of visiting convenience stores, by age, July 2007-September 2008
- Younger shoppers make more trips
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- Figure 21: Number of visits to convenience stores in last 4 weeks, by age, July 2007-September 2008
- Male shoppers visit more often
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- Figure 22: Number of visits to convenience stores in last 4 weeks, by gender, July 2007-September 2008
- Average of $15 spent on last convenience store visit
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- Figure 23: Average amount spent on last convenience store visit, summary, January 2009
- 7-Eleven is most frequently shopped convenience store
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- Figure 24: Convenience stores shopped, January 2009
- Young respondents buy a wider array of products
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- Figure 25: Products bought at convenience stores, by age, January 2009
- Coffee is the draw for older adults
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- Figure 26: Food and drink items bought at convenience stores, by age, January 2009
- Shoppers want to see more natural and organic foods
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- Figure 27: Interest in products/services at convenience stores, by age, January 2009
- Teens
- Three out of four teens shop convenience stores
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- Figure 28: Incidence of visiting convenience stores, by gender and age, July 2007-September 2008
- Teens make more visits to convenience stores
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- Figure 29: Teenagers: Number of visits to convenience stores in last 4 weeks, by gender and age, July 2007-September 2008
- 7-Eleven is teens’ favorite too
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- Figure 30: Teenagers: convenience stores visited in last month, by store, July 2007-September 2008
Attitudes and Motivations
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- Women do their convenience store shopping when traveling
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- Figure 31: Attitudes and behaviors regarding convenience stores, by gender, January 2009
- Older shoppers come for the coffee, but pass on the food
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- Figure 32: Attitudes and behaviors regarding convenience stores, by age, January 2009
- Prices are the number one reason for not shopping convenience stores
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- Figure 33: Why convenience stores are not shopped, by gender, January 2009
Race and Hispanic Origin
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- Asian respondents much less likely to shop convenience stores
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- Figure 34: Incidence of visiting convenience stores, by race/ethnicity, July 2007-September 2008
- Blacks and Hispanics are most frequent shoppers
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- Figure 35: Number of visits to convenience stores in last 4 weeks, by race/Hispanic origin, July 2007-September 2008
- 7-Eleven the overall favorite, but subtle differences appear by race/Hispanic origin
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- Figure 36: Convenience stores shopped most frequently, by race/Hispanic origin, January 2009
- Convenience stores meet a wide array of needs for Hispanic shoppers
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- Figure 37: Products bought at convenience stores, by race/Hispanic origin, January 2009
- Stores may consider healthier fare, but should keep junk food favorites
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- Figure 38: Food and drink items bought at convenience stores, by race/Hispanic origin, January 2009
- Coffee tops coffee shops with Hispanic and black shoppers
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- Figure 39: Attitudes and behaviors regarding convenience stores, by race/Hispanic origin, January 2009
- Black and Hispanic shoppers interested in a wider array of products/services at convenience stores
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- Figure 40: Interest in products/services at convenience stores, by race/Hispanic origin, January 2009
Custom Consumer Groups
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- Race/Hispanic origin and age
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- Figure 41: Frequency of visiting convenience stores, by race/Hispanic origin and age, January 2009
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- Figure 42: Products bought at convenience stores, by race/Hispanic origin and age, January 2009
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- Figure 43: Interest in products/services at convenience stores, by race/Hispanic origin and age, January 2009
Cluster Analysis
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- Introduction
- Big Spenders
- Who they are
- Soft-drink and Gasoline Guzzlers
- Who they are
- Low-spending Road-trippers
- Who they are
- Cluster characteristics
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- Figure 44: Convenience store shopper clusters, January 2009
- Figure 45: Frequency of visiting convenience stores, by convenience store shopper clusters, January 2009
- Figure 46: Average amount spent on last convenience store visit, by convenience store shopper clusters, January 2009
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- Figure 47: Attitudes and behaviors regarding convenience stores, by convenience store shopper clusters, January 2009
- Figure 48: Products bought at convenience stores, by convenience store shopper clusters, January 2009
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- Figure 49: Food and drink items bought at convenience stores, by convenience store shopper clusters, January 2009
- Figure 50: Interest in products/services in convenience stores, by convenience store shopper clusters, January 2009
- Cluster demographics
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- Figure 51: Convenience store shopper clusters, by gender, January 2009
- Figure 52: Convenience store shopper clusters, by age, January 2009
- Figure 53: Convenience store shopper clusters, by household income, January 2009
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- Figure 54: Convenience store shopper clusters, by race, January 2009
- Figure 55: Convenience store shopper clusters, by Hispanic origin, January 2009
- Cluster methodology
Appendix: Trade Associations
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