Exclusive data and analysis of the highs and lows projected for the convenience store industry in
the year ahead.
Convenience store retailers are mostly optimistic about their business prospects for 2020, although that optimism is subdued compared to this time last year.
Among the reasons cited for their optimism are:
STRONG CONSUMER CONFIDENCE
LOW FUEL COSTS
INNOVATION
Also, competition from dollar stores, the growth
of electric vehicles, the tight labor market,
and increased government regulation.
“Amazon coming into
convenience retailing
in a big way.”
2020 Business Outlook
CURRENT
YEAR AGO
1
2
3
4
5
0%
0%
2.3%
4.2%
30.2%
33.3%
53.5%
37.5%
14%
25%
Terrible,
wake me when it’s over
It’s going to be our
best year ever!
79.7%
Overall, retailers
expect their 2020
per-store profits to:
Increase 3.4%
Which of the following will have the biggest
impact on your sales and profitability in 2020?
CURRENT RANK
Overall, retailers
expect their 2020
per-store sales to:
Increase 3.8%
1
1
4
3
7
2
8
9
6
5
CLICK HERE
TO SEE WHERE
THEY ranked
last year
For the second consecutive year, retailers believe motor fuel prices will have the greatest impact on their sales and profits. However, tobacco and electronic cigarette regulation leapt from fourth place to second among this year’s chief factors.
More than two-thirds of the retailers surveyed are optimistic about their companies’ business prospects in 2020. However, a year ago, 25 percent of retailers said 2019 would be “their best year ever.” This year, only 14 percent of retailers say the same about 2020.
Click on the arrow to reveal how optimistic retailers are
of retailers expect their 2020 sales to increase.
expect their 2020 profits to increase.
74.6%
Sales and Profit expectations
9.4%
12.7%
of retailers expect their 2020 sales to decrease.
expect their 2020 profits to decrease.
10.9%
12.7%
of retailers expect their 2020 sales to stay the same.
expect their 2020 profits to stay the same.
2
3
4
5
6
7
8
9
Motor fuel prices
Tobacco
& e-cig regulation
Labor turnover
& hiring
Brick-and-mortar competition
Healthy eating
trends
E-commerce competition
Demographic changes
Mobile commerce/
marketing
Emerging technologies
1
4
3
7
2
8
9
6
5
Order online/
pickup
in-store services
Amazon
Go stores
Dollar stores
Home delivery services
Mass merchandise stores (i.e., Walmart, Target)
Quick-service restaurants
Fast-casual restaurants
Grocery stores
Drugstores
C-store retailers are more concerned about brick-and-mortar competition today than they were a year ago, with dollar
stores seen as the biggest cross-channel threat.
35.2%
26.2%
56.1%
50.4%
15.2%
9.5%
4.8%
25.8%
16.5%
Which of the following
do you consider the biggest cross-channel competitive threats?
While retailers project overall category sales will increase this year, they have higher expectations for some categories and lower expectations for others.
2020 Product
Category
Outlook
High expectations: PREPARED FOOD
DOLLAR
SALES
UNIT
VOLUME
NET CHANGE
+5.7%
NET CHANGE
+4.6%
Prepared food has the best category
outlook among retailers.
Cigarettes has the worst category outlook.
DOLLAR
SALES
NET CHANGE
+2.3%
NET CHANGE
+1.8%
UNIT
VOLUME
Which of the following “enhanced convenience”
services do you currently or plan to offer?
Mobile payment at traditional
in-store checkout
DOLLAR
SALES
NET CHANGE
+5.7%
NET CHANGE
+4.6%
UNIT
VOLUME
Mobile payment at pump
Delivery
Frictionless checkout via mobile app
Click-and-collect
Drive-thru
At-pump ordering for in-store items
Frictionless checkout via
in-store kiosk
51.9%
47.7%
29.5%
22.0%
24.6%
13.6%
4.5%
2.3%
22.7%
27.3%
22.7%
34.1%
18.2%
16.4%
31.8%
40.9%
Click here to reveal the services that stores PLAN TO ADD IN 2020
A large percentage of convenience retailers are looking to implement some form of “frictionless” technology in their stores this year. Slightly more are planning to do so via an in-store kiosk vs. a mobile app.
*All results based on a survey fielded in November 2019
Low expectations: Cigarettes
Among their apprehensions are: