A Healthy Opportunity

As health and wellness goes mainstream, c-stores should respond with choice

By Renée M. Covino

TWO YEARS of a pandemic that upended consumers’ lifestyles, routines, eating habits, moods and more have pushed the supersonic button on the importance of health and wellness for individuals across multiple aspects of their daily lives.

There’s strong evidence across the retail sector that consumer preferences have recently shifted to include a greater interest in health-conscious products and a lifestyle more focused on wellness. In a recent consumer trends report from consulting and technology services firm Capgemini, 69 percent of shoppers said they will be more conscious of personal health and will look to purchase healthier products postpandemic.

“Healthier eating has gone more mainstream, and the general population is more accustomed to embracing new health objectives,” said Sara Watson, principal of consumer products, retail and services for Capgemini Americas.

Regarding the convenience channel, in particular, Watson said: “It seems like we’re shifting to a more inclusive model of bringing a range of food selections together in c-stores. No longer do products need to be labeled or grouped by healthy vs. unhealthy. It’s just presenting customers with a selection of grab-and-go foods that can meet their needs.”

The Kid Factor

The Capgemini research also pointed to a particular health-conscious consumer group rising above others — consumers with children. In the study, 74 percent of shoppers with children in their households said they will be more cautious about personal health, compared to 67 percent of shoppers without children.

Simple Ways C-stores Can Get Healthy

Convenience Store News asked industry experts to offer creative ways for c-stores to tap into today’s health and wellness movement, particularly focusing on “simple things” that don’t require finding more square footage. Here are their suggestions:

“C-stores don’t have to convert whole aisles or sections. Place some better-for-you products into the set. Typically, these items have a higher profit margin and a slightly higher ring.” — Jeff Canner, Rule Breaker Snacks

“Messaging such as ‘small steps to healthier living’ or ‘convenient healthy options’ are good reminders that convenient doesn’t need to be unhealthy and, to the contrary, can be packed with nutrients that surpass even a cooked meal.” — Karl Zarse, M.D., Idaho Spine & Pain

“Offering more grab-and-go items with plant-based proteins is a simple way to adjust inventories and account for consumers’ evolving preferences. Also, the demand for immune support products grew as the pandemic progressed, and this trend is expected to continue. Consumers are looking for ways to boost their natural immunity against infection.” — Sara Watson, Capgemini Americas

“Convenience stores that offer gas can provide electric charging stations, bringing in a new demographic, one that will most likely be interested in purchasing products that promote health and wellness.” — Gail Levy, HFactor Water

“Cleanliness is key to a c-store’s health and wellness perception. So are cheerful, colorful callouts announcing ‘locally grown fruit’ or ‘fresh salads daily.’” — Randy Rolfe, certified nutritionist & healthy lifestyle author

c-stores should also plan to target Generation Z consumers, as Gen Z shoppers are willing to pay a premium for healthy, clean and sustainable products more than any other generation, noted Watson.

These days, convenience stores are better positioned to cater to the health-conscious crowd as the pandemic initiated a changing consumer profile in c-stores, observed Gail Levy, founder and CEO of HFactor Water, maker of hydrogen water.

The channel now attracts “a more affluent, as well as younger, customer,” she said. “These consumers are driving the sales of better-for-you products.”

More and more convenience stores are exploring and adding better-for-you products into their merchandise mix, reported Jeff Canner, chief operating officer at Rule Breaker Snacks, whose products are 100 percent vegan and plant-based.

“The next generation of c-store customers is coming, and their tastes and styles are different,” Canner added.

A Trusted Destination

As consumers take a more proactive role in better managing their health, the time is ripe for the convenience channel to better manage its health and wellness offerings.

“There is still room for expansion across the channel, as 69 percent of convenience store shoppers feel it is challenging to find healthy foods, and 41 percent expressed they would like to see healthier prepared foods offered,” cited Tracy DeCarlo, director of category solutions at private brand partner Daymon. “As consumers seek increased product offerings, convenience retailers can become trusted destinations.”

Words That Resonate

According to health and wellness experts, trending product attributes include:

• Plant-based foods • Whole foods/ natural foods • Free from • High protein • High fiber • Low sugar • Low/no ABV beverages • Reduced-calorie beverages • Immune support • Prebiotics/probiotics • Freshly prepared • Food as medicine • Functional nutrition • Gut health • Flexitarian diets • Preventative/ protective care • Antioxidants • Environmentally responsible • Low carbon footprint

One of the best ways for c-stores to stay competitive in this arena, according to DeCarlo, is to utilize a private brand portfolio, which she says provides the best opportunity to differentiate and consistently evolve to meet changing health needs.

A dedicated internal brand of healthy grab-and-go options, such as precut fresh fruit and vegetables, bento-style boxes offering charcuterie-style highprotein foods, and plant-based snacks such as premium nuts, should be on the radar, she advised.

“The delicate balance retailers need to address is that one size does not fit all, and what wellness and healthy eating mean to one consumer is different from another,” she said.

Learning From Other Channels

Long known as the place for “Cokes and smokes,” the convenience store industry is somewhat behind other channels in regards to focusing on health and wellness.

“C-stores can mimic the quick action of the drug channel to pivot into the health trend. [Drugstores] have done a great job identifying products on shelves and creating modules for these products,” said Levy.

She also stressed the importance of education and calling out nutritional information at the point of purchase to attract and engage consumers of a certain mindset.

Watson agrees that drugstores have emerged as a “major player” in the health and wellness space. Consumers became very familiar with drugstores during the pandemic as primary COVID-19 testing and vaccination centers.

“This interaction also led to consumers exploring immune support supplements, which became increasingly popular as the pandemic progressed,” she noted.

Watson recommends convenience stores take a page from drugstores and offer immune support products, particularly functional wellness drinks, to “meet the moment and further establish their place in the health and wellness world.”

The convenience channel can also take a lesson or two from the restaurant industry. This sector is very good at offering “healthy” products that appeal to a broad audience, such as plant-based, low-carb, no-sugar and gluten-free items.

The restaurant industry, as well as the grocery channel, have also become skilled in providing new fulfillment and delivery services throughout the pandemic. Thanks to an overwhelmingly positive response from consumers, these offerings are here to stay.

“Shoppers have now come to love and expect services like mobile ordering and curbside pickup, and much like the restaurant industry, convenience stores will need to ramp up offerings to meet demands,” said Watson. “If c-stores aren’t already investing heavily in their digital channels, delivery services, loyalty programs and health-focused marketing campaigns, they will be left behind.” CSN