You probably don’t need to drive far to see a new convenience store or see the signs of one in construction. There’s a good reason for that. The C-store industry experienced tremendous growth in 2023 and the trend is continuing to look optimistic. According to Neilsen reporting on the recent C360 conference, “The sector added more new locations in 2023 than any other retail format in the U.S. – 2,222, outpacing even dollar stores which boasted 1,368 new openings. Drug stores, mass merchandisers, supercenters, and supermarkets all ended the year with fewer locations.” Here are a few highlights of 2023 C-store growth to understand the opportunities available to expand sales and profitability.
Which products are the biggest sellers?
Which products are the biggest sellers?Of course, tobacco products and beverages are still the backbone of successful convenience stores, but fresh foods and grab-and-go meal options continue to grow in popularity with consumers. The NACS State of the Industry report showed a 12.2% increase in food service sales over 2022, surpassing cigarettes as the highest-selling product category.
As a result, many successful C-stores feature refrigerated cases with grab-and-go sandwiches, salads, boiled eggs, fruits, and cheeses. Consumers are also taking advantage of prepared meals, like fried chicken and sub sandwiches. The quality of these prepared meal options has grown, and more consumers are choosing a quick stop at their local convenience store to pick up something to eat on-the-run. At H&S Energy, we’ve introduced Papa Sal’s deli menus with light breakfast and lunch/dinner options at our Power Market C-stores.
Immediate gratification is the rage.
C-stores fulfill an integral need of today’s consumers: immediate gratification. For example, rather than buying a six-pack of their favorite soda or pop, more consumers desire to grab a cup and fill it with a beverage from the fountain. Similarly, packaged food selections that just require the consumer to open and enjoy sell well. For example, selections like those with pre-sliced meat, cheese, and crackers are popular grab and go snacks.
What about fuel?
Sure, consumers still expect to fill up their vehicles’ tanks at C-stores, but interestingly, it no longer drives traffic to them. To understand this statement, consider that consumers fill up their fuel tanks 2.3 times per month on average. At the same time, the average consumer visits a C-store 3 times a week. Effective C-store leaders now focus on in-store products to drive sales and then follow up with affordable and convenient fuel options.
H&S Energy can help you grow your convenience store business.
Are you ready to take your business to the next level, or excited to enter into the industry with a new location for your community? Contact our experts at H&S Energy. We manage over 250 retail locations under the Power Market, Pinnacle 365 by Power Market, and Extra Mile brands. Let’s talk about how we can share our expertise to facilitate fuel distribution, provide card lock solutions, or add ancillary products and services to enhance your bottom line. Contact H&S Energy today!