Convenience Stores Gaining Competitive Edge for Shopper Share of Wallet

Convenience store operators are successfully driving traffic, sales and loyalty by continuing to upscale their freshly prepared food offerings. In advance of NACS Show 2024 to be held in Las Vegas Oct. 8-10, Acosta Group is sharing the results of its recent Freshly Prepared Foods Shopper Insights Study conducted with its propriety Shopper Community.

“With 27 percent 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 percent are purchasing them in c-stores, representing a significant opportunity for continued growth in the channel.”

“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.”

WHO IS TODAY’S FRESH PREPARED C-STORE SHOPPER

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.

• With a median age of 41, these shoppers are ten years younger than those not shopping for freshly prepared items in c-stores
• 28 percent are men, compared to 20 percent who are women
• 62 percent have children at home
• A greater proportion of Gen Z (22 percent) and Millennials (36 percent) make up this shopper base, often consuming freshly prepared foods on the go
• 39 percent of these shoppers are eating these items away from home
• 43 percent are more likely to order from online apps for convenience
• 82 percent of Millennials and 60 percent of Gen Z are members of c-store loyalty programs and 85 percent of Millennials subscribe to c-store retailers’ apps, according to Acosta Group’s proprietary fall 2023 Convenience Store Shopper Insights Study

WHAT THE FRESH PREPARED C-STORE SHOPPER WANTS

These shoppers have hectic lifestyles. Acosta Group’s recent Freshly Prepared Foods study also reflects that they are making their food choices for health-conscious reasons and are purchasing freshly prepared items to eat either away from home or on the go.

• 39 percent of these shoppers are eating their meals or food items away from home
• 36 percent are consuming their freshly prepared items while at work
• 1/3 of these shoppers are consuming the items during outdoor activities like hiking, camping or fishing
• 38 percent describe these items as being better quality, supporting their choice to eat healthier

“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.

SNACKING IMPORTANT TO FRESH PREPARED C-STORE SHOPPERS

Snacking is part of almost every day for these shoppers, especially if the items are new, interesting and quick to access.

• Nearly 67 percent of these shoppers snack at least once daily
• 40 percent are using freshly prepared meals or items for snacking and 56 percent will immediately consume these items
• 48 percent are open to trying new and interesting foods, compared to just 33 percent of those not shopping fresh prepared

SNACKS AND BEVERAGES A PRIORITY FOR ALL C-STORE SHOPPERS

Many c-store shoppers 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. According to Acosta Group’s 2023 Snacking Trends study, 49 percent of c-store shoppers prefer healthy snacks, with that number rising to 55 percent for Millennials.

Overall, salty snacks and refrigerated beverages represent 65 percent and 59 percent, 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.

KEY LEARNINGS, FRESH PREPARED C-STORE SHOPPERS

Through its proprietary research, Acosta Group has identified three primary reasons fresh prepared c-store shoppers are purchasing more of these items at c-store than they did last year:

• 48 percent because the costs of other food and groceries have changed
• 44 percent because more freshly prepared items are available
• 43 percent 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.

Shopper research for this study was conducted in April 2024 with 977 US shoppers that purchase freshly prepared food items in c-stores. The Acosta Group Shopper Community is comprised of more than 40,000 demographically diverse shoppers across the US and is the company’s proprietary community for survey engagement.

NACS SHOW 2024

Please visit Acosta Group, featuring Acosta and CORE Foodservice, at Booth N1862 and CROSSMARK at Booth N2045 at NACS Show.