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Research Shows What Consumers Want in Foodservice
148,126 Stores Represents 1.2% Increase Over 2010
Research Shows What Consumers Want in Foodservice
Convenience store operators know the importance of understanding and anticipating the needs of the "on-the-go" consumer. With ever-shrinking margins on gasoline and cigarettes, convenience retailers view foodservice as a way to capture repeat customers and boost in-store sales. Here are a few findings on consumer buying trends:
- The increase in the sophisticated eating habits of on-the-go consumers has sharpened their expectations for food freshness and quality.
- The purchase of convenience food is a low-involvement process which is motivated by such things as quality perception, food property factors and local consumer demographics.
- Market research on quality perception show consumers buy what looks attractive and is readily available. Aesthetics is the first step in the decision making process.
- Attractive merchandising is another key factor. This includes both packaging, point of sales materials and any equipment being used to help merchandise and sell the product. Hungry browsers can be turned into buying customers if they are drawn in to appealing food items that say "try me" or "buy me now".
- Once the consumer has purchased the product, it is critical that their sensory needs are met. That means the food must look good, taste good and smell good. This is also the best way to ensure a repeat buying customer.
- Consumers continue to look for new and innovative items on a menu. If something is not working, the successful c-store operator will put something new and fresh in.
- C-store customers are more easily attracted to a store that offers a safe, clean and hospitable environment. While this would seem obvious, many times it's often overlooked or ignored. Such things as eliminating cluttered displays and signage will do a lot to "freshen" a store's overall appearance.
The best way to be successful in these trying times is to stay ahead of the curve. The c-store business that comes out a winner is the one who is an agent of change. The challenge is to make sure that every inch of the store is being used to bring the consumer a new kind of convenience!
Convenience Store Count Sets Record
148,126 stores represents 1.2% increase over 2010
The U.S. convenience store count increased to a record 148,126 stores as of December 31, 2011, a 1.2% increase (1,785 stores) from the year prior, according to the latest NACS/Nielsen Convenience Industry Store Count.
The convenience retailing industry has seen remarkable growth over the last three decades, said NACS. At year-end 1981, the store count was 71,400 stores, year-end 1991 the store count was 103,400 stores and at year-end 2001 the store count was 124,500 stores.
The U.S. population on December 31, 2011, was an estimated 313 million, according to the U.S. Census Bureau. That means that today there is one c-store per approximately every 2,100 U.S. residents.
"The continued growth in store count shows our industry is vibrant and adding jobs in difficult economic times. Convenience stores are an essential part of the fabric of everyday life across the country and our core offer of convenience continues to resonate with customers," said NACS chairman Tom Robinson, president of Robinson Oil, Santa Clara, Calif.
Motor fuels sales continue to be important to c-store operations. Overall, 81.7% of c-stores sell motor fuels. A total of 120,950 c-stores sell motor fuels, a 3.1% increase (3,653 stores) over last year.
The convenience retailing industry also continues to be dominated by single-store operators, accounting for 62.9% of stores (93,209 stores total). The growth of one-store operations again outpaced the overall growth in store count.
Texas (14,766 stores) once again was the state with the most c-stores, followed by California (10,763) and Florida (9,510). New York (7,929) and Georgia (6,535) round out the top five; North Carolina (6,269), Ohio (5,359), Michigan (4,865), Illinois (4,553) and Virginia (4,512) round out the top 10.
Five states had store counts grow at a rate that was more than double the national average: New Jersey (3.3% growth), Alaska (3.2%), Massachusetts (2.7%), Oregon (2.7%) and New York (2.6%). Growth in Washington, D.C., was 2.9%.
According to Nielsen TDLinx, as of December 31, 2011, the total count of c-stores is approximately 30,000 locations greater than the cumulative totals of competing channels, including supermarkets (32,924 stores), drug stores (38,526 stores) dollar stores (22,782 stores) and superettes (13,234 stores).
