US Convenience Stores Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Total US sales and fan chart forecast of in-store convenience store sales, at current prices, 2016-26
• • Figure 2: Convenience stores outlook, 2022-27
• Opportunities and challenges
• Inflation, gas prices could make consumers think twice about nonessential purchases
• Experiences, exclusivity are areas of opportunity to drive interest in convenience stores
• Tap into the focus on holistic health
• Evolving EV expectations will impact the convenience store landscape
• Key consumer insights

Market Size and Forecast

• In-store sales will see steady growth after peak in 2021
• • Figure 3: Total US sales and fan chart forecast of in-store convenience store sales, at current prices, 2016-26
  • Figure 4: Total US convenience store in-store sales, at current prices, 2017-27

Segment Performance

• Tobacco sales remain flat with a lingering murky future
• Indulgences remain an opportunity for convenience stores
• Pandemic leaves lasting impact on foodservice at convenience stores
  • Figure 5: Distribution of convenience store in-store sales, by category, 2018 and 2020

Market Factors

• Economic uncertainty leaves consumers with less in their wallets
• Inflation eats into discretionary spending
  • Figure 6: Disposable personal income change from previous period, 2010-22
  • Figure 7: Consumer Price Index change from previous period, 2007-22
• Rising gas prices are a conundrum for consumers and c-stores
  • Figure 8: US gasoline and diesel retail prices, 2010-22
• Younger, multicultural consumer population grows; convenience stores should benefit
  • Figure 9: Population by generation, 2016-26
  • Figure 10: Generations, by race, 2021
• • Figure 11: Generations, by Hispanic origin, 2021
• Technology upgrades can deliver greater convenience, engagement with consumers
• Increased interest in electric vehicles will reshape the convenience store experience

Competitive Strategies and Market Opportunities

• Convenience stores tap into playfulness
  • Figure 12: 7-Eleven creates custom branded car for sweepstakes, 2022
• Upscale the convenience store
  • Figure 13: Foxtrot elevates its coffee offerings, 2022
• Convenience stores can be a partner in EV growth and adoption
• Lean into the summer travel boom
• Exclusivity can pique consumer interest
  • Figure 14: Circle K shows off exclusive partnership with Mountain Dew, 2022

The Convenience Store Consumer – Fast Facts

Convenience Stores Shopped

• Retailers can tap into resuming travel habits
  • Figure 15: Speedway helps consumers save at the pump with in-store purchases, 2022
• • Figure 16: Convenience stores shopped, 2022
• Younger consumers are on the move and looking for partners along the way
  • Figure 17: Convenience stores shopped, by gender and age, 2022
• Convenience stores are critical to multicultural communities
  • Figure 18: Convenience stores shopped, by race and Hispanic ethnicity, 2022

Convenience Store Shopping Frequency

• C-stores are an essential part of consumers’ shopping routines
  • Figure 19: Convenience store shopping frequency, 2022
• Target frequent younger consumer visitors with added convenience and fun
  • Figure 20: 7-Eleven focuses on younger males in Facebook advertising campaign, 2022
  • Figure 21: Convenience store shopping frequency, by gender and age, 2022
• Multicultural communities see convenience stores as a necessary resource
  • Figure 22: Convenience store shopping frequency, by race and Hispanic ethnicity, 2022

Occasions to Shop Convenience Stores

• Consumers use convenience stores to satisfy their immediate cravings, needs
  • Figure 23: Convenience store trip type, 2022
• Tap into varying trip types by lifestage
  • Figure 24: Convenience stores trip type, by gender and age, 2022
• Affluent consumers seek out c-stores during travel; lower income for everyday items
  • Figure 25: Convenience stores trip type, by household income, 2022
• Turn functional stops into fun purchases
  • Figure 26: Occasions for visiting a convenience store, 2022
• Each generation seeks out convenience stores for their specific needs
  • Figure 27: Occasions for visiting a convenience store, by generation, 2022

Motivations to Shop Convenience Stores

• Convenience, lucrative reward programs keep consumers coming back
  • Figure 28: Reasons to stop at convenience stores, 2022
• Better product offerings, services will connect with younger consumers
  • Figure 29: Reasons to stop at convenience stores, by gender and age, 2022
• Convenience stores have plenty of options to improve their customer experience
  • Figure 30: Love’s highlights salad in its Instagram post, 2022
• • Figure 31: Motivations to shop convenience stores, 2022
• Women seek more control over their convenience store visit
  • Figure 32: Motivations to shop convenience stores, by gender, 2022
• Tech improvements will garner shopping interest from younger generations
  • Figure 33: Circle K encourages rewards sign up via text messaging, 2022
  • Figure 34: Motivations to shop convenience stores, by generation, 2022

Behaviors at Convenience Stores

• Consumers are visiting c-stores but delivery, loyalty remain low
• • Figure 35: Behaviors at convenience stores, by generation, 2022
• Parents partake in convenience stores’ propositions
  • Figure 36: Behaviors at convenience stores, by parental status, 2022

Attitudes toward Convenience Stores

• Consumers see convenience stores as a functional stop rather than emotional
  • Figure 37: Attitudes toward convenience stores – Shopping experiences, 2022
• Fresher foods would motivate consumers to shop with convenience stores
  • Figure 38: Attitudes toward convenience stores – Food options, 2022
• Convenience stores can look for partnerships, clearer labels for food items to connect with each generation
  • Figure 39: Attitudes toward convenience stores – Food options, by generation, 2022
• Convenience stores’ private label items put up a fight against big name brands
  • Figure 40: Attitudes toward convenience stores – Packaged drinks and snacks, 2022
• Focus on affordability, expanded reward options
  • Figure 41: Attitudes toward convenience stores – Value, 2022
• Providing flexibility to Millennials, Gen X
  • Figure 42: Attitudes toward convenience stores – Value, by generation, 2022

Convenience Store Loyalty Memberships

• Allow consumers to earn quickly, use simply to drive reward membership signups
  • Figure 43: Loyalty program participation, 2022
• Loyalty programs should enhance convenience for all consumer groups
  • Figure 44: Loyalty program participation, by key demos, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Forecast
• Consumer survey data
• Abbreviations and terms
• Abbreviations

Appendix – The Market

• • Figure 45: Total US convenience store in-store revenues and forecast, at inflation-adjusted prices, 2017-27