Convenience Stores - US - March 2020

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Top takeaways
The issues
Slow growth for in-store not enough to offset fluctuations in fuel revenue
Figure 1: Total US convenience store revenues and forecast, by segment, at current prices, 2014-19
C-stores attract more than three quarters of consumers
Figure 2: Convenience store types visited, December 2019
Frequent visits the norm
Figure 3: Frequency of convenience store visits, December 2019
The opportunities
With frequent visitors an opportunity to get beyond gas and food
Figure 4: Reasons for visiting convenience stores, by convenience store visit frequency, December 2019
Beyond convenience: selection, service key to building visits and purchases
Figure 5: Reasons for choosing a convenience store over other channels, by age, December 2019
Young shoppers prefer convenience stores but want healthier choices
Figure 6: Attitudes toward convenience stores, by age, December 2019
THE MARKET – WHAT YOU NEED TO KNOW
Convenience store revenues fluctuate on swings in fuel prices
Slow growth for in-store not enough to offset fluctuations in fuel revenue
Foodservice increases in share and importance
Big grocers go small, creating fresh competition for c-stores
MARKET SIZE AND FORECAST
Convenience store revenues fluctuate on swings in fuel prices
Mintel’s forecast and COVID-19
Figure 7: Total US sales and fan chart forecast of convenience store revenues and forecast, at current prices, 2014-24
Figure 8: Total US convenience store revenues and forecast, at current prices, 2014-24
MARKET BREAKDOWN
Slow growth for in-store not enough to offset fluctuations in fuel revenue
Figure 9: Total US convenience store revenues and forecast, by segment, at current prices, 2014-19
Total tobacco products hold steady but may have a cloudy future
Foodservice increases in share and importance
Beverages remain a prime c-store draw amid changing tastes
Figure 10: Distribution of convenience store in-store sales, by category, 2016 and 2018
MARKET PERSPECTIVE
C-store foodservice sales growth slows as competition intensifies
A move to more MTO
Figure 11: Total US convenience store foodservice sales, at current prices, 2014-19
Big grocers go small, creating fresh competition for c-stores
MARKET FACTORS
Fluctuating fuel prices drive swings in c-store revenue and profit
Figure 12: US gasoline and diesel retail prices, all grades annual average, 2009-19
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Reinventing convenience stores for a new generation of shoppers
Frictionless retail well-suited to c-stores
WHAT’S HAPPENING
Reinventing convenience stores for a new generation of shoppers
Foxtrot Market: integrating in-store and online
Choice Market: a focus on local
7-Eleven leverages private label to strengthen in-store sales
WHAT TO WATCH
Frictionless retail well-suited to c-stores
THE CONSUMER – WHAT YOU NEED TO KNOW
C-stores attract more than three quarters of consumers
Food, drinks and gasoline most common reasons for visiting c-stores
A choice of convenience
Gas prices and convenience drive c-store selection
Better selection of food and beverages key to driving more c-store visits
Young shoppers prefer convenience stores but seek improvements
CONVENIENCE STORE VISITS
C-stores attract more than three quarters of consumers
Figure 13: Convenience store types visited, December 2019
C-stores appeal to broad demographic, but young adults are key
Figure 14: Convenience store types visited – NET Any c-store, by gender/age, household income, race/Hispanic origin, December 2019
Frequent visits the norm, representing a potential platform for growth
Figure 15: Frequency of convenience store visits, by gender/age, household income, race/Hispanic origin, December 2019
REASONS FOR VISITING C-STORES
Food, beverages and gasoline drive c-store visits
Figure 16: Reasons for visiting convenience stores, December 2019
Young adults visit c-stores for a wider array of reasons
Figure 17: Reasons for visiting convenience stores, by age, December 2019
Frequent visitors look for more than gas and food
Figure 18: Reasons for visiting convenience stores, by convenience store visit frequency, December 2019
REASONS FOR CHOOSING A C-STORE OVER OTHER CHANNELS
A choice of convenience
Figure 19: Reasons for choosing a convenience store over other channels, December 2019
Beyond convenience: selection, service key to building visits and purchases
Figure 20: Reasons for choosing a convenience store over other channels, by age, December 2019
CONVENIENCE STORE SELECTION FACTORS
Gas prices and convenience drive c-store selection
Figure 21: Convenience store selection factors, December 2019
Food and beverages are key to c-store loyalty
Figure 22: Convenience store selection factors – top three, by convenience store visit frequency, December 2019
DESIRED IMPROVEMENTS IN C-STORES
Improvements in food and beverages key to driving more c-store visits
Figure 23: Desired improvements in convenience stores, December 2019
Younger shoppers more open to enhancement in food and convenience
Figure 24: Desired improvements in convenience stores, by age, December 2019
Frequent visitors want more food choice; non-visitors focus on health
Figure 25: Desired improvements in convenience stores, by convenience store visit frequency, December 2019
ATTITUDES TOWARD CONVENIENCE STORES
Improving perceptions but still a narrow view
Figure 26: Attitudes toward convenience stores, December 2019
Young shoppers prefer convenience stores but want healthier choices
Figure 27: Attitudes toward convenience stores, by age, December 2019
Younger shoppers more engaged in c-stores
Figure 28: Convenience store shopping behaviors, by age, December 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 29: Total US convenience store revenues and forecast, at inflation-adjusted prices, 2014-24