Consumer expectations of convenience stores have changed over the years. Back in the 1980s and 1990s, most convenience stores were a place to get gas, grab a soda or coffee, and maybe pick up some candy or a bag of chips.
Smokers can buy cigarettes and there may be bathrooms, but the food is either non-existent or relatively unpalatable, like greasy hot dogs.
Things have changed in recent years.
“Fuel and tobacco products remain an important category in the nation’s more than 150,000 convenience stores, but growth in the industry is led by store formats that feature higher quality and a wider variety of prepared foods and beverages,” NIQ shared in The State of Convenience 2024.
The study shows some of the changes taking place in convenience stores across the United States.
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They offer a wider and higher-quality selection of prepared foods, beverages and non-seasonal confectionery, which is driving growth in sales and travel.
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With the addition of electric vehicles and more shopping missions limited to in-house sales, they are rethinking the long-term role of fuel sales.
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They are investing in new technologies, including self-checkout, personalization and retail media, to modernize operations and the shopping experience.
According to the NACS 2023 State of the Industry Report, prepared foods are growing 12% year over year.
It’s a changing market, which has led one of the country’s largest convenience store players to re-evaluate its product portfolio.
Richard Garcia, Shell’s global manager of convenience retail, told Nielsen NIQ that the way Americans use convenience stores has changed.
“The historical model of convenience, especially in the United States, is to use fuel to attract people to your location,” he shared. “It definitely changes the situation where the store becomes a destination and you want them to be able to buy fuel while they’re there. That’s already happening now.”
People don’t just go to convenience stores because they need gas.
More retail:
“Really. When you look at our data, the average person fills up their car, I think it’s 2, 2.3 times a month. The average convenience store shopper goes to a convenience store more than three times a week. So, convenience stores have become destinations,” he added.
As someone who travels a lot, I’ve noticed a real shift in convenience store usage. While I once relied on the drive-thru for a quick meal, now I more often buy higher quality prepared foods at chains like Wawa or RaceTrac.