During the COVID-19 pandemic, convenience stores saw significant shifts in consumer behavior. While gasoline sales took a temporary dive, consumers increased their use of mobile ordering applications, drive-through windows, parking lot pickup, and delivery services. The increased focus on sanitation to curb the spread of the virus also brought “serve yourself” and many store-served meal selections to a halt as customer demand moved to pre-packaged grab-and-go meals and snacks. Many storeowners are wondering whether these shifts are temporary or if the changes will outlast the pandemic’s span.
What was happening before COVID-19 arrived in the United States?
For most of us, the “before times” seems so long ago, and because of that, it can be challenging to remember how demand was shifting before we entered the pandemic.
In November 2019, Mondelez International released their first-ever “State of SnackingTM” report, revealing striking shifts in consumer eating behavior. According to their study, consumers reported increasingly busy lifestyles that took away from time to plan and prepare nourishing meals while at the same time they were becoming more aware and focused on eating well for physical and mental wellness. As a result, 71% of adults surveyed said snacking helped them control their hunger and manage their calories throughout the day.
In a 2017 report by the USDA, “Food Purchase Decisions of Millennial Households Compared to Other Generations,” millennials are responsible for about 40% of the revenue generated by an average convenience store. Additionally, the USDA found these consumers keep fewer refrigerated items and prefer to purchase convenient pre-cooked meals.
This means that consumers were already in the right position to optimize grab-and-go selections before emergency procedures solidified these changes. Industry leaders forecast these changes are here to stay for the long haul. While some serve-yourself and counter-served meals will inevitably return just as indoor restaurant seating is open again, the demand for grab-and-go snacks and meals are here to stay.
New competition will make sales more challenging.
A noticeable change the pandemic brought on is the abundance of grab-and-go snack and meal selections now available at supermarkets and even some restaurants. Grocers such as Hy-Vee, Giant, Whole Foods, and Kroger have made significant changes in their offerings. Build-your-own salad bars and many “pay by the ounce” deli counters are now offering products already packaged in refrigerator cases–making purchasing the items faster for the consumer. At the same time, the store owner realizes greater efficiency with fewer employee labor requirements. These changes narrow the advantages convenience stores have in providing quality food with quick and easy delivery.
How can convenience stores compete?
Regardless of a business’s size, there are many opportunities to enhance your delivery models to make shopping easier for your customers. Mobile applications that allow customers to shop and often pay for groceries online have become very affordable. Partnerships with local delivery services make last-mile fulfillment with home delivery accessible for even single-store owners. Adding a simple drive-through window can make picking up a last-minute item easy for the person in a hurry to get home from work.
Our team at GP Energy can help by reviewing your business to identify opportunities within your community to add or expand services that meet the needs of today’s consumers. We partner with Krispy Krunchy Chicken, Circle K, and other c-store brands to offer gas station owners opportunities to grow their customers’ services. Put GP’s proven experience and drive for excellence behind your business today!
