Author: Mintel Group Ltd.
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Convenience Stores (excl gas sales) - US - March 2014
Scope and Themes
 
What you need to know 
Total convenience store retail sales reached $127 billion in 2013, and are expected to increase by nearly 4% in 2014 to reach $131 billion. Convenience store retail sales are expected to rise 16% between 2013 and 2018, reaching $147 billion in 2018. Many factors impact the profitability of convenience stores, including consumer confidence and unemployment. Meanwhile, concerns about obesity and health have created demand for healthier offerings at convenience stores. In addition, the rising Hispanic population will likely contribute to growth in this market.

Definition 
This report builds on the analysis presented in Mintel’s Convenience Stores—US, August 2012, Attitudes Toward Convenience Store Shopping—US, April 2011, and Convenience Stores—US, May 2009. Mintel’s Convenience Store Foodservice—US, March 2014 is an important companion to this report. Other related reports include Blacks and Convenience Stores—US, February 2012 and Hispanics and Convenience Stores—US, February 2012.

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 stock-keeping units (SKUs)
●	Off-street parking and/or convenient pedestrian access
●	Extended hours of operation with many open 24 hours a day, seven days a week

Note: Sales data in this report will include retail sales only and exclude sales of gasoline. This report will discuss convenience store foodservice, but it will not be a central area of focus. Mintel’s Convenience Store Foodservice—US, March 2014 focuses on foodservice at convenience stores.

Data sources
Sales data
●	Market Size and Forecast: includes data based on US Census Bureau, Annual Retail Trade Survey and Economic Census; NACS “State of the Industry Report”; US Energy Information Administration, December 2013 “Monthly Energy Review.” 
●	Data from NACS “State of the Industry” report were also used for distribution of convenience store sales.

Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer attitudes and behaviors toward shopping at convenience stores. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted Dec. 27, 2013-Jan. 1, 2014, among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results. Please note that our surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms
Abbreviations
The following is a list of abbreviations used in this report. 

BLS | Bureau of Labor Statistics
C-store | Convenience store
EDLP | Everyday Low Price
EIA | Energy Information Association
NACS | National Association of Convenience Stores
NHTS | National Household Travel Survey

Terms
Generations are discussed within this report, and they are defined as:

World War II/Swing generations | Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born between 1933 and 1945 and are aged 69-81 in 2014.
Baby Boomers | The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X | The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49.
Millennials* | Born between 1977 and 1994, Millennials are aged 20-37 in 2014.
iGeneration | Born between 1995 and 2007, members of iGen are aged 7-19 in 2014.
Emerging generation | The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014 members of this as-yet-unnamed generation are younger than 7.

* also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows: 

CPI

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. 

The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.

Based on Bureau of Labor Statistics definition.

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