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The American consumer is feeling stretched and stressed. The retail relief they’re looking for is only a few steps away from the gas pump.
Kantar Retail’s monthly survey of shopper traffic found that convenience stores such as Circle K saw more customers in their stores than they did a year ago. Placer.ai uses mobile-device data to track foot traffic. In December, the company said that “C-stores” like Kwik Trip, Buc-ee’s, and other chains would see a year-over-year increase in their store traffic in 2024.
Retail experts say that convenience chains have improved their food and beverage offerings, while keeping the prices affordable.
Darren Rebelez (CEO of Casey’s General Stores) said during a mid March conference call that consumers are looking for value. However, they don’t want to compromise on quality.
According to the National Association of Convenience Stores (NAC), four-fifths of America’s more than 150.000 convenience stores sell fuel. Gas stations have smaller shops that sell basic items like milk and bread. Along with pasta, fresh fruit and diapers you can also find sunglasses, cosmetics, toys, and shampoo.
According to NACS, 80% of items purchased at gas stations are consumed within an hour. However, many shoppers also stock up on pantry goods, such as bread or eggs, in preparation for their next meal. According to market researcher NIQ, dollar sales of tobacco products, which is the largest convenience store category, declined last year. Frozen food, wine, deli, and dairy products also rose.
Younger shoppers and those with children are particularly drawn to the stores’ combination of selection and convenience, according to Julie Craig, Kantar's vice president of shopper insights.
“If we put ourselves in the mindset of younger parents not wanting to jump through hoops in a traditional grocery store—parking, getting a cart, sprinting across an enormous store, waiting in a checkout line—the convenience stores offer the ultimate quick trip,” she said.
Casey’s non-fuel gas station sales, which have more than 3,000 locations in the United States, grew by more than 15% during its most recent quarter. This was driven by general merchandise, as well as prepared foods such hot sandwiches and baked products.
“We sell basic daily needs … that are low-dollar denominations,” Rebelez said. “When people need to reduce discretionary spending, our guests would consider a lot of things we sell as non-discretionary.”
