What you need to know
Convenience stores are a steady presence in most US consumers’ lives and a significant $450 billion business. With 82% of survey respondents stating that they have gone to a convenience store within the last three months, this channel is clearly an important platform for connecting with shoppers and making sales – and fits well with current trends towards simplicity and speed in shopping. Indeed, things are currently looking bright for c-stores after several years of slow sales.
Low gas prices, which in some areas have occasionally approached $1/gallon, are encouraging people to drive more and thus visit convenience stores to fuel up – 70% of respondents who visited gas station or road based convenience stores stated they went to get gas. Low gas prices mean that consumers are open to discretionary purchases during their trip – and impatient Millenials also find c-stores a compelling alternative to wandering the endless aisles of a big box store for basic “fill in” grocery trips. In this report, Mintel looks at trends currently driving growth in the convenience store sector and identifies further opportunities.
Definition
This report builds on the analysis presented in Mintel’s Convenience Stores – US, March 2014, Convenience Stores – US, August 2012 and Attitudes Toward Convenience Store Shopping – US, April 2011. Mintel’s Convenience Store Foodservice – US, March 2016 is an important companion to this report.
For the purposes of this report, Mintel defines convenience stores as establishments that retail a limited line of goods, primarily groceries and ready-to-consume beverages and snacks, in easily accessible locations. The majority of convenience stores also sell motor fuel.
According to the NACS (National Association of Convenience Stores), common characteristics of convenience stores include:
-
Building size of less than 5,000 square feet
-
Stock of at least 500 SKUs (stock-keeping units)
-
Off-street parking and/or convenient pedestrian access
-
Extended hours of operation with many open 24 hours a day, seven days a week
Note: This report will discuss convenience store foodservice, but it will not be a central area of focus. Mintel’s Convenience Store Foodservice – US, March 2016 focuses on foodservice at convenience stores.
