Convenience stores gaining edge for shopper’s wallet: study
Convenience store operators in the United States are successfully driving traffic, sales, and loyalty by continuing to upscale their freshly prepared food offerings, according to the Acosta Group’s Freshly Prepared Foods Shopper Insights Study conducted with its propriety Shopper Community.
The study’s full findings will be presented at the upcoming NACS Show 2024 in Las Vegas Oct. 8-10.
"With 27% of c-store shoppers purchasing freshly prepared items more than they did a year ago, it's evident that this category is influencing shopper behavior," said Kathy Risch, SVP, Thought Leadership and Shopper Insights, Acosta Group. "Consumers today are regularly purchasing freshly prepared foods to replace or supplement meals throughout the day, shopping for these items across all channels, from traditional grocery to quick serve to c-stores. Our study reveals that of those shopping for freshly prepared items, approximately 23% are purchasing them in c-stores, representing a significant opportunity for continued growth in the channel," continued Risch.
"It's absolutely a race for foot traffic for c-stores, amidst a multitude of competitors," said D.J. White, SVP, Corporate Distribution, CORE Foodservice, an Acosta Group agency. "Savvy operators understand that it's crucial to drive preference for their stores as consumers are looking for elevated, freshly prepared foods on their way to work, taking their kids to soccer practice and attending other outdoor activities."
Fresh prepared c-store shoppers are young, busy, skew more male than female, and live in larger households that are more likely to have children. Some 39% of these shoppers are eating these items away from home and 43% are more likely to order from online apps for convenience, according to the study. Some 82% of Millennials and 60% of Gen Z are members of c-store loyalty programs, and 85% of Millennials subscribe to c-store retailers' apps.
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"Whether it's limited time offers, similar to what shoppers are familiar seeing at competitive fast food and quick service restaurants, or the recognition of trusted brand names used in freshly prepared c-store items, operators continue to provide value-added offerings," said White.
Many c-store shoppers also say they want to buy healthier sweet treats more now than in prior years and expressed an interest in natural/organic, with options for gluten-free and vegan as well. As well, 49% of c-store shoppers prefer healthy snacks, with that number rising to 55% for Millennials.
Overall, salty snacks and refrigerated beverages represent 65% and 59%, respectively, of the most purchased items for all c-store shoppers. Store-made/self-serve beverages are also highly popular.
"Understanding the importance of these items and this consumer's interest in new and innovative products provides a meaningful opportunity for operators to drive sales via bundling as well as in-store and online marketing," said Hobie Walker, SVP, Small Format Division, Acosta, an Acosta Group agency.
Acosta Group also identified three primary reasons fresh prepared c-store shoppers are purchasing more of these items at c-store than they did last year:
- 48% because the costs of other food and groceries have changed
- 44% because more freshly prepared items are available
- 43% because they don't have as much time available to cook
C-stores that understand why consumers are looking for new options and continue to expand their freshly prepared offerings have an exciting opportunity to continue to grow their sales.
"Because we understand the importance of health-conscious options for these shoppers and their interest in new flavors and unique products, as well as their comfort in making impulse purchases, we can more strategically cross-market, meeting their need for quick access, taste, quality, and healthfulness," said White.
