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Smart c-store owners will capitalize on opportunity.
Smart stocking practices can help any business owner gain new customers and generate more traffic from their current customers. While competitive pricing and the presence of popular brands can certainly create an edge over other retailers, it is crucial for c-store owners to offer items that are needed in a pinch. Store owners need to grasp which of these items are most desired, and which of these items are understocked. This can prove to be the difference between dominance and failure in today’s competitive convenience channel.
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"Staples of the convenience market will always include drinks, snacks and lottery tickets. But consumers now continually indicate a desire to see other products on the shelves. "
Store owners who draw customers to their shop as the initial or only stop of the day are likely to gain the greatest return. Crucial to making a c-store the primary stop is the ability to offer a variety of products.
Consumers spend more when they feel they can complete more
of their staple purchases
IN ONE SPOT.
On a typical day that includes a convenience stop among other store visits, the most profitable trip occurs when the c-store is the consumer’s first stop.
John Smith
Additional products that could help drive shoppers to c-stores include:
Sandwich bags and gallon-size bags are top of mind for consumers who need items in a pinch.
Specifically, the top three products that consumers wish they could find at convenience stores are:
Second, paper products prove to be the c-store customer’s most valued items. These include toilet paper, paper towels, tissues, paper plates and more. People tend to forget about paper products until they are suddenly needed in a pinch.
First, items that are needed in a pinch become especially important when luring consumers. Whether it’s for an emergency or simply as part of a late-night visit, these purchases speak to the unique advantages of the convenience store.
Knowing what
c-store consumers want and need
is essential today.
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Amid this shift, perhaps convenience stores have the most at stake, with opportunity to become more vital than ever. The key to fulfilling this promise is a deep understanding of what motivates c-store shoppers and how to best align the store format to their evolving needs. The daily routines and essentials for today’s Millennials, moms and working professionals are more diverse and selective – and the shopping experiences they are accustomed to are more refined. True convenience needs to be not just fast and easy but more holistic and representative of modern lifestyles.
From endless aisles to same-day delivery to frictionless checkout, what were once leading-edge trends have become the new standard, a driving focus to meet customer expectations without barriers. Convenience in all things.
All of retail has its eye on “convenience.”
VISION & VITALITY
presented by
TRANSFORMING THE C-STORE EXPERIENCE FOR THE NEW GENERATION
in a pinch
is generally doing so in order to fulfill emergency or immediate needs. In-a-pinch visits rarely include a gas fill-up. But they tend to cover a more expansive list of purchases that could include drinks, snacks, tobacco, over-the-counter medicines and paper products.
C-STORE VISITS:
By and large, c-store trips tend to fall into three categories:
• The routine visit
• The road trip
• Shopping in a pinch
When people who don’t regularly use convenience stores were asked to name products they’d “VERY LIKELY” purchase at a c-store if the price were competitive, their most popular answers were:
A series of consumer surveys* completed in the past year offers some clues for the c-store owner who wants to ensure a steady flow of traffic and profits.
Third, consumers want to see their favorite brands. People would be more inclined to make their purchases in a convenience store if they could expect to find a larger selection of quality brands that match their values.
And finally, prices need to be competitive. While consumers understand that convenience entails a slight markup, they will abandon c-stores for their local grocery store or other retail channel if pricing becomes unreasonable.
Understanding the consumer.
the
road trip
shopper pays a visit to the c-store when he or she is traveling for work or vacation. This type of visit is almost always connected to a gas purchase. The items that are most frequently purchased in-store include drinks and snacks.
the
routine visit
occurs within the regular flow of life, multiple times throughout the week, when a person commutes to work or runs errands around town. This customer most frequently purchases drinks, snacks, lottery tickets
and tobacco.
The consumer who shops
The importance of a
primary shopping destination.
Stocking the RIGHT consumables.
Of these “wish items” that people currently don’t find in their c-store, consumers listed paper products more than twice as often as the next two favored responses (dairy items and cleaning products).
Plastic Bags
Childcare items are essential for many families. Diapers and wipes are usually needed immediately, so convenience shopping is a natural fit.
Diapers & Wipes
Pet needs have become essential for so many consumers. Keeping cat litter, cat food and dog food on hand is a smart strategy.
Cat Litter & Food
Another item always needed in a pinch, today’s consumer stops by for batteries whenever their accessories, toys and tools run low on power.
Batteries
Whether in an emergency or just to stay prepared, consumers favor making these purchases conveniently close to their
location, particularly when
they travel.
OTC Meds
paper towels (25%)...
toilet paper (21%)...
and dish soap (16%).
What prompts a c-store visit?
By and large, c-store trips tend to fall into three categories.
Conclusion
Profitable shelving strategies.
When thinking about how to manage shelf space for various product categories, store owners should keep in mind which items are most favored by their customers.
*Sources: P&G Quantitative C-Store H&P Survey, 2018; InfoScout HH Panel C-Store Shopper Behavior, L52W thru Aug 2018; Ipsos Qualitative Consumables Exercise, 2018
For Kitchen and Laundry, shelf management would prioritize paper towels, dish soap, garbage bags and paper plates.
Turning Expectations on Their Head
For Bathroom, the ideal set-up would feature toilet paper, toothpaste and facial tissues. Toiletry items may be best in smaller sizes, attracting shoppers who are traveling or are looking to get though the next couple of days before hitting the grocery store.
For Garage, store owners can prioritize toilet paper, garbage bags and light bulbs.
For Basement, the ideal shelf presentation showcases toilet paper, light bulbs, laundry detergent and garbage bags.
Turning Expectations
on Their Head
Items that have traditionally been ignored at the c-store can now become a point of focus and a generator of new profit. Surveyed consumers indicated which items they would and would not typically buy at a convenience store.
Highest percentage of responses for products they will “ALWAYS buy”:
• Drinks (fountain, bottled, coffee): 82%
• Snacks and Candy: 76%
• Lottery Tickets: 35%
Highest percentage of responses for products they will “NEVER buy”:
• Apparel: 56%
• Electronics: 55%
• Beauty Care (skin care, hair care): 51%
• Tobacco Products: 44%
Paper products
For Basement, the ideal shelf presentation showcases toilet paper, light bulbs, laundry detergent and garbage bags.
Cleaning products
Dairy items
(including paper towels, toilet paper, tissues, paper plates and napkins)
First stop... Average spend is $30.
Middle stop... Average spend is $26.
Last stop... Average spend is $22.
No other stop... Average spend is $27.
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(note, another 18% say they’d “always buy” tobacco products)