Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Channel back on a path of growth, but faces some threats
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- Figure 1: Total US convenience store revenues and fan chart forecast, at current prices, 2012-22
- Competitive pressure mounts
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- Figure 2: Reasons for choosing c-store over other store type, January 2018
- Falling short on product assortment and price
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- Figure 3: Reasons for not visiting a c-store, January 2018
- The opportunities
- Protect the customer base
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- Figure 4: C-store visitation – at least weekly, by gender and age, race and Hispanic origin, January 2018
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- Figure 5: Attitudes toward c-stores, by gender and age and race and Hispanic origin, January 2018
- Redefine convenience through use of digital and technology
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- Figure 6: Behaviors and interest areas related to digital and technology, by generation, January 2018
- Focus on foodservice
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- Figure 7: Attitudes related to c-store food assortments, by gender and age, race and Hispanic origin, January 2018
- What it means
The Market – What You Need to Know
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- Time for a reset
- Volatile fuel prices and less smokers serve as threats
- Other retail channels compete on convenience
Market Size and Forecast
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- Declining motor fuel prices put a dent in sales revenue, but sector set to rebound
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- Figure 8: Total US convenience store revenues and fan chart forecast, at current prices, 2012-22
- Figure 9: Total US convenience store revenues and forecast, at current prices, 2012-22
Market Breakdown
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- Despite declines, motor fuel sales comprise majority of total
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- Figure 10: Total US convenience store revenues and forecast, by segment, at current prices, 2012-17
- Figure 11: Total US convenience store revenues, by segment, at current prices, 2015 and 2017
- Tobacco products comprise over a third of total in-store sales
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- Figure 12: Distribution of in-store convenience store sales, by category, 2016
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- Figure 13: Distribution of total convenience store sales, by category, 2016
Market Perspective
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- Redefining convenience in today’s retail landscape
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- Figure 14: Reasons for choosing c-store over other store type, January 2018
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- Figure 15: Attitudes toward online delivery services, by generation, January 2018
Market Factors
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- Motor fuel prices remain low, but start to climb once again
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- Figure 16: US motor fuel gasoline and diesel retail prices, 2007 - 2017
- Road trips on the rise
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- Figure 17: Annual vehicle-distance traveled (billion miles), moving 12-month total on all roads, 2007 – November 2017
- Fuel-efficient cars a consideration, but not a major threat at this time
- Population shifts younger, more diverse
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- Figure 18: Population by generation, 2018
- Figure 19: Generations, by race and Hispanic origin, 2018
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- Figure 20: Any c-store visitation (net), by generation and race and Hispanic origin, January 2018
- Stable economy leading to increased spending
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- Figure 21: Consumer confidence and unemployment, 2007-17
- Not as many smokers means not as many tobacco sales
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- Figure 22: Current cigarette smoking among US adults, 2016
Key Players – What You Need to Know
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- Consumer desire for healthier items drives product selection
- C-stores need to “speed up” their own omnichannel efforts
- Consolidation on the horizon
- Loyalty programs get a facelift
What’s Working?
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- Better-for-you product assortments grab more shelf space
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- Figure 23: NACS show: New Hillshire snacking products, October 2017
- Figure 24: NACS show: Powerful oatmeal, October 2017
- Figure 25: NACS show: Organic Valley Good to Go hard-boiled eggs, October 2017
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- Figure 26: NACS show: Dasani sparkling fountain dispenser, October 2017
- Snacks get saltier and spicier
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- Figure 27: NACS show: Sunny Sky Jolly Rancher slushies, October 2017
- Figure 28: NACS show: N.B.T.F. Fruit Jerky, October 2017
- Whose customers are the most satisfied?
What’s Struggling?
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- Some retailers seeing in-store sales softness
- Adjusting to digital tools and e-commerce
What’s Next?
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- Is the c-store industry on a course of consolidation?
- Experimentation with new kiosks and store formats
- Kiosks
- Store formats
- Becoming more data-oriented
The Consumer – What You Need to Know
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- Gas station-based c-stores have an advantage
- Young men, Hispanics, and Black consumers make up core customer base
- C-stores should look to improve quality perceptions
- C-stores seen by some as expensive and not viable choice for groceries
- C-stores have some catching up to do to truly be omnichannel
C-store Visitation
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- Opportunity to increase frequency of visitation
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- Figure 29: Shopping frequency, January 2018
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- Figure 30: Shopping frequency, by select demographics, January 2018
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- Figure 31: Shopping frequency, by marital and parental status, January 2018
- C-stores with gas stations see highest visitation overall
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- Figure 32: Types of c-stores visited, January 2018
- C-stores without gas stations may see more frequent visitors
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- Figure 33: Shopping frequency, by types of c-stores, January 2018
Factors Influencing Retailer Choice
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- Location, price, convenience key selling points
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- Figure 34: Factors that influence c-store preference, January 2018
- Men are looking for more quality
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- Figure 35: Factors that influence c-store preference, by gender and age, January 2018
- Store environment matters too
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- Figure 36: Factors that influence c-store preference, by race and Hispanic origin, January 2018
- What does “quality” mean anyway?
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- Figure 37: C-store foodservice quality indicators, December 2016
- It all comes back to price
Reasons for Visiting
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- Non-food items represent an opportunity area
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- Figure 38: Reasons for visiting, January 2018
- Promote foodservice to appeal to Millennials and iGens
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- Figure 39: Reasons for visiting, by generation, January 2018
- Expanded food and beverage assortments have upside potential
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- Figure 40: Types of food/beverages purchased, January 2018
Reasons for Not Visiting
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- No reason to go
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- Figure 41: Reasons for not visiting a c-store, January 2018
- Price is much more of a barrier for older consumers
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- Figure 42: Reasons for not visiting a c-store, by gender and age, January 2018
Marketing Influencers
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- Marketing reportedly goes unnoticed by nearly half of shoppers
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- Figure 43: Marketing influencers, January 2018
- In-store promotions and social media key to appeal to core customers
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- Figure 44: Marketing influencers, by age, January 2018
- Hispanics lean in to marketing
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- Figure 45: Marketing influencers, by Hispanic origin, January 2018
Attitudes and Behaviors
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- Price over promotion
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- Figure 46: Attitudes toward price, by gender and age, January 2018
- Consumers view store brands positively
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- Figure 47: Attitudes toward store brands, by gender and age, January 2018
- High interest in stores that specialize in healthy foods
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- Figure 48: Attitudes toward healthy foods, by gender and age and parental status, January 2018
- Mobile apps preferred over websites
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- Figure 49: Shopping behaviors, by gender and age, January 2018
- Loyal to wherever it’s most convenient
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- Figure 50: Attitudes related to loyalty, by gender and age, January 2018
Desired Improvements
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- Expanded food and beverage offerings could yield sales upside
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- Figure 51: Desired improvements, by gender and age, January 2018 – Part one
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- Figure 52: Desired improvements, by gender and age, January 2018 – Part two
- Hispanics express interest in all improvement areas
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- Figure 53: Desired improvements, by race and Hispanic origin, January 2018
- TURF analysis reveals many opportunities to maximize reach
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- Figure 54: TURF Analysis – Desired improvements, January 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- TURF methodology
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 55: Total US convenience store revenues and forecast, at inflation-adjusted prices, 2012-22
- Figure 56: Distribution of in-store convenience store sales, by category, 2014 and 2016
- Figure 57: Population by generation, 2013-23
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- Figure 58: Prevalence of obesity among US adults aged 20 and over, 1997-2017*
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Appendix – The Consumer
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- Figure 59: Table - TURF Analysis – Desired improvements, January 2018
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- Figure 60: Domestic travel transportation in the last 12 months, by parental status, 2017
- C-store types
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