Where can you grab a quick cup of coffee, pick up a fresh sandwich for lunch, and gather ingredients for tonight’s dinner? More and more convenience stores (c-stores) are expanding product offerings and rearranging store layouts to serve as truly convenient one stop shops.
C-stores have long served as destinations for the road trip pit stop or last minute birthday card pick-up, but more recent trends are defying past perceptions. Increasing percentages of square footage dedicated to grocery item shelf space, coffee bars, and even beer taps seem to be an attempt to attract new customers by giving them additional reasons to visit.
For example, Sunoco’s Craft Beer Exchange adds an extra incentive to venture inside APlus c-stores while pumping gas. The program features a rotating selection of craft beers available in refillable to-go growlers. After 12 pilot locations in western New York saw great success, Sunoco announced an expansion of the Craft Beer Exchange to select South Carolina stores.
In addition, the introduction of produce and pre-packaged fresh to-go items, including sandwiches, cut fruit and yogurt, has also drawn new customers. The typical c-store customer base now includes more health-conscious families, busy professionals and younger shoppers, who may not have considered shopping there previously because of product lines which did not meet their needs.
C-stores following the trend of offering healthier options are creating new distribution and marketing opportunities for health food and sports nutrition manufacturers, while potentially putting unhealthy CPG brands in jeopardy. As many retailers do not have the funds to physically expand stores, struggling product lines may be eliminated to make room for front-of-store takeout counters and refrigerated cases full of fresh foods and produce.
Consumers seem to be welcoming product line shifts, as c-stores have cited success in urban pilot markets. However, as c-stores continue to establish themselves as providers of healthy to-go options, innovation will be essential for differentiation. For example, 7-Eleven employs a dietitian to improve the nutritional value of ready-made food items, and even marketed her recommendations to assist with nutrition-related New Year’s resolutions.
It will be interesting to chart both c-store changes and shifts in consumer perception as this trend evolves. How is your company taking action to adapt to the new convenience of c-stores?
Tags: Sam Norris, convenience stores, fresh foods, produce, healthy options, to-go, nutrition, CPG, marketing, trends, consumers, retailers, manufacturers
