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Convenience Store News June 2022

W H AT ’ S N E X T I N C O N V E N I E N C E A N D F U E L R E TA I L I N G

BACK TO THE

FUTURE MANY OF THE CONVENIENCE CHANNEL’S KEY FINANCIAL METRICS MIRROR THE INDUSTRY’S GLORY DAYS.

THE FORECOURT OF THE FUTURE

Volume 58, Number 6

JUNE 2022

CSNEWS.COM

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IF YOU DON’T ADVOCATE FOR YOUR BUSINESS, WHO WILL? Now is the time to join the 7,000 store owners across the country who are fighting for fair tobacco policies! Learn more at TobaccoIssues.com

VIEWPOINT

More Challenges Await a Resurgent C-store Industry New questions arise in a post-pandemic world TWO YEARS AGO, after the convenience store industry weathered pandemic-related lockdowns that wreaked havoc on sales and profits, I applauded c-stores for helping to keep the country’s economy afloat as the essential businesses they are. I expressed my opinion that the next focus of retailers should be safely managing and coping with the post-pandemic normal.

The results of Convenience Store News’ 2022 Industry Report (see page 34) show just how well the convenience channel managed and rebounded after a nearly two-year slog through the economic difficulties caused by COVID-19 and its subsequent wave of variants. Staying open for business wasn’t easy — between supply chain shortages and frequently changing public health guidelines, it was a constant struggle to adapt to changing circumstances. The overall story told by the 2021 numbers is that the industry had a very good year. Total U.S. c-store sales grew by almost 25 percent, and most other key financial metrics matched those reported in 2018 and 2017 when the industry was flying high. Indeed, the c-store sales growth rate exceeded that of overall U.S. retail sales (up 17.9 percent), which Forbes described as one of the strongest years in retail history.

Motor fuel revenue and volume were up 40 percent and 8 percent, respectively. In-store sales hit a record high, and foodservice sales alone were up more than 20 percent, a tremendous bounce back after slumping by 10 percent during 2020. Gross profits rose 4.7 percent last year. Those figures mean the industry did a wonderful job operating in the post-pandemic normal. But let’s not get too excited. All those terrific financial results did was get the industry back to where it was three years ago. There are still new crises to deal with, from skyrocketing oil prices to continued supply chain issues to labor shortages. Ponder these questions:

• How will higher gas prices impact in-store sales? • How will skyrocketing inflation affect consumer spending? • Does anyone think the rate of increases in labor costs and credit-card fees will slow in 2022?

• Will supply chain disruption continue into 2023, or perhaps beyond?

• What happens to fuel volume as prices rise and more Americans turn to electric vehicles?

And then, there’s the ever-present consumer challenge as customers expect more and more “convenience” in every aspect of their shopping experience. Based on last year’s financial performance, it appears the convenience store industry is back on track. Next stop: unknown. For comments, please contact Don Longo, Editorial Director, at (201) 855-7606 or dlongo@ensembleiq.com.

EDITORIAL EXCELLENCE AWARDS (2013-2022)

EDITORIAL ADVISORY BOARD

2021 Jesse H. Neal National Business Journalism Award Finalist, Best Infographics, June 2021

2018 Jesse H. Neal National Business Journalism Award Finalist, Best Editorial Use of Data, June 2017

2013 Jesse H. Neal National Business Journalism Award Best Single Issue, October 2012

2013 Jesse H. Neal National Business Journalism Award Finalist, Best Profile, August 2012

2020 Eddie Award, Folio: magazine Business to Business, Retail, Series of Articles, September 2019 2018 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Website Business to Business, Retail, Full Issue, October 2017 Business to Business, Editorial Use of Data, June 2017 2017 Eddie Award, Folio: magazine Winner, Business to Business, Retail, Single/Series of Articles, May 2017 Honorable Mention, Business to Business, Retail, Single/Series of Articles, June 2016 2016 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2015 Business to Business, Retail, Single/Series of Articles, August 2015

2016 American Society of Business Press Editors, National Azbee Awards Gold, Best How-To Article, March 2015 Bronze, Best Original Research, June 2015 2016 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best How-To Article, March 2015 Silver, Best Original Research, June 2015

2015 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Single Article, February 2014

Laura Aufleger OnCue Express

Ray Johnson Speedee Mart

Chad Beck Core-Mark

Ruth Ann Lilly GPM Investments LLC

Edward Davidson Ed Davidson & Associates (7-Eleven Inc., retired) Robert Falciani ExtraMile Convenience Stores Jim Hachtel Eby-Brown Co.

2014 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2013 Business to Business, Retail, Single Article, February 2013

Chris Hartman Rutter’s

2013 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2012

Vito Maurici McLane Co. Inc. Matt Paduano Lakeport Markets Jonathan Polansky Plaid Pantries Inc. Greg Scriver Kwik Trip Inc. Roy Strasburger StrasGlobal

2015 American Society of Business Press Editors, National Azbee Awards Silver, Best Profile (long form), February 2014 2015 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best Special Supplement, November 2014 Silver, Best Profile (long form), February 2014 2013 American Society of Business Press Editors, Midwest Regional Azbee Awards Bronze, Best Editorial/Commentary, July 2012

2020 Trade Association Business Publications Intl. Tabbie Awards Honorable Mention, Best Single Issue, September 2019 2016 Trade Association Business Publications Intl. Tabbie Awards Silver, Front Cover Illustration, June 2015

J UNE

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CONTENTS JUNE 22

VOLUME 58 N UMB ER 6

COVER STORY PAGE 34

2022

28 66 FEATURES

DEPARTMENTS

COVER STORY

VIEWPOINT

SMALL OPERATOR

3 More Challenges Await a Resurgent C-store Industry New questions arise in a post-pandemic world.

28 Sell Your Story What is it about your store that makes it different from any other store in town?

34 Back to the Future Many of the convenience channel’s key financial metrics mirror the industry’s glory days.

WHATS NEXT

FEATURE

66 Is the Future of the Forecourt Electric? The adoption of electric vehicles and hybrids is seeing charging stations make their way to the c-store forecourt, and this trend is likely to continue.

8 CSNews Online 24 New Products

81 Trends in DEI&B A conversation with NextUp’s VP of Learning Karen Jones. STORE SPOTLIGHT

83 Keeping Pace Street Corner is aggressively growing to meet the needs of today’s urban, digital communities. INSIDE THE CONSUMER MIND

106 Product Proficiency Fair prices and in-stock supply matter most to c-store shoppers these days.

4 Convenience Store News C S N E W S . c o m

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CONTENTS JUNE 22

VOLUME 58 N UMB ER 6

8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631 (773) 992-4450 Fax: (773) 992-4455 www.csnews.com

BRAND MANAGEMENT Vice President/Group Brand Director Paula Lashinsky (917) 446-4117 plashinsky@ensembleiq.com EDITORIAL Editorial Director

Don Longo dlongo@ensembleiq.com

Editor-in-Chief

Linda Lisanti llisanti@ensembleiq.com

Senior News Editor

Melissa Kress mkress@ensembleiq.com

Senior Editor

Angela Hanson ahanson@ensembleiq.com

Managing Editor

INDUSTRY ROUNDUP

CATEGORY MANAGEMENT

10 Convenience Channel Prepares for Busy Summer Travel Season

FOODSERVICE

12 Couche-Tard Brings Electric Vehicle Charging to the U.S. 14 Eye on Growth 14 Fast Facts 16 Retailer Tidbits 18 Supplier Tidbits 20 In the Public Eye

62 A Common Goal Branded partners are helping convenience store operators navigate the new foodservice landscape. TECHNOLOGY 74 Pumped-Up Connections The future of the fueling experience can be spelled m-o-b-i-l-e.

Danielle Romano dromano@ensembleiq.com

Associate Editor

Sanestina Hunter shunter@ensembleiq.com

Contributing Editor

Renée M. Covino reneek@aol.com

Contributing Editor

Tammy Mastroberte tmastroberte@gmail.com

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CORPORATE OFFICERS Chief Executive Officer

Jennifer Litterick

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CONVENIENCE STORE NEWS AFFILIATIONS Premier Trade Press Exhibitor

The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

Convenience Store News (ISSN 0194-8733; USPS 515-950) is published 12 times per year, monthly, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rates: Subscription rate in the United States: $125 one year; $230 two year; $14 single issue copy; Canada and Mexico: $150 one year; $270 two year; $16 single issue copy; Foreign: $170 one year; $325 two year; $16 single issue copy; Digital One year, digital $87; two year, $161. Periodical postage paid at Chicago, IL 60631, and additional mailing addresses. Copyright 2022 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to Convenience Store News, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.

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CSNEWS ONLINE

ONLINE EXCLUSIVE

MOST VIEWED NEW PRODUCT

Beyond Meat Jerky Beyond Meat Inc. and PepsiCo Inc. introduce Beyond Meat Jerky, the first product from the companies’ joint venture, Planet Partnership LLC. The plant-based jerky is marinated and slow roasted to offer the savory experience of traditional beef jerky. It comes in three varieties: Original, Hot & Spicy, and Teriyaki. Beyond Meat Jerky contains 10 grams of protein per serving, no cholesterol, and is made with simple, plant-based ingredients like peas and mung beans, all without GMOs, soy or gluten. Available in three different pack sizes, Beyond Meat Jerky is Beyond Meat’s first shelf-stable product.

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INDUSTRY ROUNDUP

Convenience Channel Prepares for Busy Summer Travel Season C-store retailers across the country launch hiring sprees to strengthen their staffs people planned to travel by car during the 2022 Memorial Day weekend. If the unofficial start to summer is any indication, this year’s summer travel season will be “on fire,” according to AAA.

NEARLY 35 MILLION

With an uptick in business on the horizon, several convenience store retailers launched hiring sprees in late spring in hopes of bringing on more staff to serve road trippers and locals alike. 7-Eleven, Speedway and Stripes, along with participating independent franchise owners and operators, hosted a National Hiring Event on May 3 across more than 13,000 stores in the United States and Canada. Irving, Texas-based 7-Eleven Inc.’s goal was to hire employees for 60,000 jobs — entry-level and management positions inside the stores, as well as support roles. Knoxville, Tenn.-based Pilot Co. also hosted a National Hiring Day event on May 3 with the aim of welcoming 10,000 new team members. Part-time and full-time team members receive company perks and benefits, including a fuel discount and free meals. Open positions at Pilot include Class-A CDL company drivers to transport fuel and

diesel exhaust fluid, and corporate positions in technology, finance, human resources, recruiting, marketing, guest services and more at its Knoxville sales and support center headquarters, offices in Dallas and Houston, and a new IT Center of Excellence in Atlanta. Maverik Inc., which bills itself as “Adventure’s First Stop,” set out to fill nearly 100 seasonal and regular retail team member positions currently available across 11 store locations throughout the Salt Lake City area. The Salt Lake City-based retailer hosted a local job fair on April 23 in Sandy, Utah, to meet potential applicants and hold on-site interviews. At GPM Investments LLC, the Richmond, Va.based company is offering a range of incentives and benefits to prospective employees as it seeks to add 5,000 new employees to its ranks. The company is looking to fill open seasonal and turnover positions at convenience stores in multiple states, with opportunities including fulltime and part-time roles at all levels. In addition, Royal Farms plans to hire more than 2,000 workers in the next few months to staff new stores opening in the Mid-Atlantic region. About 1,200 jobs are expected to be in Maryland, with about three-quarters of those in the Baltimore metro area, where the retailer is based.

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INDUSTRY ROUNDUP

Couche-Tard Brings Electric Vehicle Charging to the U.S. The company’s initiative starts at a Circle K store in South Carolina has begun its venture into electric vehicle (EV) charging outside of Europe. The parent company of Circle K is deploying Circle K branded electric vehicle fast chargers in the United States with plans to bring charging units to 200 Circle K and Couche-Tard convenience stores across North America over the next two years.

ALIMENTATION COUCHE-TARD INC.

Laval, Quebec-based Couche-Tard’s EV journey in the U.S. starts in South Carolina. On May 20, the company activated its first U.S. site with high-power DC fast charging under the Circle K banner at a new prototype Circle K store in Rock Hill. Along with future deployments across its North American network, Couche-Tard will use the Rock Hill site to better understand U.S. customer needs, closely tracking driver usage and the resulting impacts on in-store foot traffic. The company chose this store to launch its U.S. charging station rollout because of its convenient location along a fast-growing commuter and travel corridor in a major

metropolitan area where EV traffic is anticipated to grow. As Couche-Tard expands EV charger availability in the U.S. and Canada, the retailer will be taking a strategic approach, building a network for the future, and looking at areas with strong EV adoption rates and electric delivery infrastructure to enable it to provide convenient charging options for customers, whether in-town or on the highway. Following a successful rollout in Europe, CoucheTard plans to deploy its own charging assets to serve the growing EV customer base, and continue to partner with other participants in the emerging e-mobility economy. “We are committed to playing a key role in meeting our customers’ evolving mobility needs as demand for sustainable energy choices continues to grow in all of our markets,” said Louise Warner, Couche-Tard’s senior vice president of global fuels. “Adding EV charging expands the mobility solutions available to our drivers, giving them a great new reason to visit us and enjoy all we have to offer both in our stores and on our forecourts.”

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INDUSTRY ROUNDUP

Eye on Growth

Buc-ee’s welcomed customers at its first travel center in Kentucky, Buc-ee’s Richmond, and its first in South Carolina, Buc-ee’s Florence. Both locations occupy more than 53,000 square feet and offer 120 fueling positions on the forecourt. Sheetz Inc. plans to expand into western Ohio with the addition of 20 new convenience stores over the next five years. Its first location in that region is expected to open in Dayton in 2024. Casey’s General Stores Inc. opened its first location without any gas pumps in Des Moines on April 22. The 3,380-square-foot store near the campus of Drake University focuses on food, beverages, and typical convenience items.

These stores represent the first of two new prototype formats for Allsup’s: a large-format convenience store and a hybrid truck stop.

New Allsup’s-branded convenience stores opened in Mineral Wells, Texas, and Alamogordo, N.M. Each new location features 5,630 square feet of merchandising space and 24 fueling positions. Rutter’s cut the ribbon on its first new build of 2022. Located in Kutztown, Pa., the store measures 10,257 square feet and is the retailer’s 80th site in its network.

Street Corner opened its first Riverside County, Calif., store in the mixed-use Metro at Main complex in Corona. The “express”style store measures 950 square feet and reimagines the neighborhood bodega with a fresh, modern vibe. Consumers can now shop a new MAPCO store in Pelham, Ala. The 5,500-squarefoot store showcases the company’s new “Store of the Future” design, featuring an efficient layout and modern details.

FAST FACTS

61% 40% 10% Up

Access to electric vehicle (EV) charging outside of the home is an important consideration for drivers. More than three in five (61%) say EV charging elsewhere would be hard to find.

Among consumers surveyed in March 2022, 40% indicated they purchased plant-based meat and/or dairy products within the last six months.

First-quarter 2022 total beverage sales at convenience stores were up 10% quarter over quarter as consumer traffic accelerated in the channel.

— Acosta

— Beverage Bytes, Goldman Sachs

— NACS

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INDUSTRY ROUNDUP

Retailer Tidbits 7-Eleven Inc. brought back its Brands

with Heart event to connect with innovative brands. Selected brands will be paired with 7-Eleven leaders for coaching, mentoring and training to prepare them for the opportunity to secure a place on its store shelves.

Store chain to a real estate investment trust. It will continue to operate the 26 convenience stores in Wisconsin and the upper peninsula of Michigan. Wawa Inc. introduced a “Skip the Bag for Good” initiative on May 4, the first day New Jersey’s ban on single-use plastic bags went into effect. The goal was to help make the transition easy for its customers. Shell Oil Co. and PDI kicked off a 10-month campaign to celebrate the 10th anniversary of the Fuel Rewards program. To date, more than 25 million members have earned $2 billion in fuel savings through the program.

This first-of-its-kind program graduated its first class of level five diesel technicians.

Love’s Travel Stops launched the Love’s Truck Care Academy in Amarillo, Texas, in April. The five-week, in-residency training program grows the skill set of newly hired diesel technicians. Team Schierl Cos. sold the buildings and properties associated with its The

Pilot Co. recognized Military Appreciation Month with special offers and freebies available in the myRewards Plus app. It also donated $100,000 to Hire Heroes USA. Maverik Inc. unveiled new offers through its Nitro Card program in time for the busy summer travel season. Offerings include fuel discounts and BonFire food promotions.

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INDUSTRY ROUNDUP

Supplier Tidbits The deal would create a comprehensive smoke-free product portfolio globally.

The Swedish Match AB board of directors recommended shareholders accept Philip Morris International’s (PMI) $16-billion offer to purchase the company. A tie-up would give PMI a greater presence in the United States. PepsiCo Beverages North America established a program to help female professionals return to the workforce post-pandemic. The program, run through a partnership with Path Forward, offers 16-week internships. Mondeléz International Inc. plans to divest its developed market gum business. The company also intends to shed its global Halls business. The Food and Drug Administration issued marketing authorization orders for certain Vuse Ciro and Vuse Vibe products in R.J. Reynolds Vapor Co.’s portfolio. The agency also OK’d applications for four NJOY Ace e-cigarette products.

P ro ducts

Mars Wrigley is building a new research and development hub to support new product innovation. The facility will be adjacent to the company’s existing Global Innovation Center on Goose Island in Chicago. Bazooka Cos. Inc. is honoring 75 years of Bazooka Bubble Gum with a yearlong celebration. A new set of comics, the return of an original flavor and a short film are all scheduled for 2022. The Coca-Cola Co. teamed up with Bill Nye to launch an animated short film that demystifies the recycling process in hopes of inspiring action. The partnership is part of its World Without Waste initiative. TAAT, an alternative tobacco company, inked a definitive agreement to acquire HLND Holdings Inc. The move will give TAAT access to a network of more than 5,000 convenience stores in and around Ohio.

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INDUSTRY ROUNDUP

In the Public Eye ARKO Corp., Richmond, Va. Packaged beverage sales rose by 1.6 percent compared to the prior year, and candy was up 3.9 percent to help boost ARKO Corp.’s first three months of 2022. Retail fuel gallons sold increased by 5.9 percent year over year to 239.558 million gallons, while fuel margins grew by 16.8 percent to 37.5 cents per gallon during ARKO’s most recent quarter ended March 31. Global Partners LP, Waltham, Mass. The integration of retail fuel and convenience store assets acquired from Consumers Petroleum of Connecticut Inc. and Miller Oil Co. helped drive a strong first quarter of 2022 for Global Partners LP. For the period ended March 31, sales at the company’s convenience stores rose by $7.9 million year over year to $58.1 million. Fuel margins came in at 31 cents per gallon, compared to 24 cents per gallon during 2021’s first quarter. Parkland Corp., Calgary, Alberta Parkland Corp. reported strong results for

its first quarter of 2022 and generated adjusted EBITDA of $387 million companywide during the three-month period. In the United States, adjusted EBITDA was $47 million, up 147 percent from $19 million in the first quarter of 2021. Its performance was underpinned by prior-year acquisitions and related synergies, strong margins, higher marine fuel demand, and new cruise ship contracts. TravelCenters of America Inc., Westlake, Ohio TravelCenters of America Inc.’s net income for the first quarter of 2022 was $16.3 million, up $22 million from a net loss of $5.7 million during Q1 2021. Adjusted EBITDA increased by $26.8 million to $55.4 million from the prioryear period. The company also generated a 45.8-percent increase in fuel gross margin, while nonfuel gross margin rose 7.1 percent.

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Premier Manufacturing’s High-quality Cigarettes:

A Portfolio of Products a Cut Above the Rest Speaking with Mark Schueller, Director of Marketing, Premier Manufacturing

Tobacco is an important category for convenience retailers. Despite new regulations further challenging the business, it remains a top money maker for convenience stores. “For the 52 weeks ending on December 26, 2021, cigarettes were the leading tobacco product sub-category in convenience stores in the United States, with sales amounting to about 57.26 billion U.S. dollars,” Statista reports. “Meanwhile, c-stores sales of e-smoking devices reached 5.93 billion dollars. In total, sales of all tobacco products in U.S. c-stores mounted up to 73.44 billion dollars.”1 When it comes to carrying an exclusive cigarette brand, c-stores are buying in because they realize exclusive store brands can drive sales and deliver higher margins, too. Convenience Store News reached out to Mark Schueller, Premier Manufacturing’s director of marketing, to find out how partnering with Premier — a subsidiary of US Tobacco Cooperative — can help these retailers develop private label tobacco products that will become destination brands, helping to build sales and profits in the category. Convenience Store News: What makes Premier Manufacturing a different kind of tobacco supplier from other brands on the market today?

is trackable because all aspects of manufacturing are done under one roof. We can go back and see which grower the tobacco came from and when the product was manufactured and shipped. On our packaging we proudly state, “A Product of US Farmers®” — and we believe so strongly in our brands, our manufacturing process, our service, and our tobacco blends that we back our products with a 100% guarantee! CSN: Why should c-stores consider partnering with Premier Manufacturing? MS: Convenience stores must focus on three things in today’s challenging retail environment: profit, reliability, and customer loyalty. Premier Manufacturing can provide value to our retail partners in ways that help them navigate all three. We’ve forged strong relationships with large national distributors like McLane, Core-Mark and Eby-Brown, and with independent, regional and large retail chains including EG America, Nouria Energy and Stewarts Shop. Team members on our national sales and support staff pride themselves on meeting customers’

needs. And we can develop POS materials for high visibility of the brands, along with sales and merchandising programs that produce greater profitibility. CSN: Let’s talk about pricing. Are your cigarettes available at price points most any shopper can afford? MS: We have a brand to fit most consumers’ budget and help ensure that they receive better quality product for the price than they would get with other cigarette brands. CSN: How have stores that have partnered with Premier Manufacturing to develop an exclusive brand fared with the product once it was introduced? MS: Retailers we have aligned with, such as Nouria and Circle-K, have become more of a destination for tobacco consumers. Partnering with Premier Manufacturing helps drive consumer loyalty for the retailer because tobacco shoppers know they are getting a brand that is available exclusively at that store. We have seen frequency and steady volume increases with our partners.

Mark Schueller: All of our cigarette brands — including 1839, 1st Class, Shield, Traffic, Ultra Buy and Wildhorse — are American-owned, American-grown and American-made. They’re made with U.S. flue-cured tobacco that the 500+ farmers who own US Tobacco Cooperative grow throughout the Southeast. Those farmers maintain GAP Connections Certification Standards, which ensures sustainable, ethical agricultural practices are followed throughout the growing and manufacturing processes. This process

To learn more about how your c-store can pursue higher margins in the tobacco category, contact Chuck Newton at cnewton@usleaf.com. 1. Tobacco product sales in U.S. convenience stores (c-stores) in 2021, by sub-category; Statista, May 3, 2022

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NEW PRODUCTS

4 2

1. White Claw Surf Variety Pack

2. Seagram’s Escapes Cocktails

3. Red Diamond 4. SaltMe! Potato Chips Ready-to-Drink Teas MicroSalt Inc. announces

White Claw Hard Seltzer introduces its first full-flavor offering from the brand. White Claw Surf features “a collision of flavors for sensational refreshment,” according to the maker. Available in a 12-can variety pack, White Claw Surf is being launched in four flavor combinations: Citrus Yuzu Smash, Tropical Pomelo Smash, Watermelon Lime Smash, and Wildberry Acai Smash. Each variety is crafted using White Claw’s BrewPure process, has a 5 percent ABV, contains 100 calories, and is gluten free. White Claw Surf beverages are available nationwide.

Driven by consumer interest in full-flavored cocktails without all the calories found in traditional mixed drinks, the Seagram’s Escapes brand unveils Seagram’s Escapes Cocktails, a new line of cocktail-inspired flavored malt beverages. The line includes four modern cocktail flavors: Pineapple Mule, with subtly spicy ginger notes; Strawberry Margarita, with a splash of lime; Grapefruit Paloma, featuring smooth and citrusy grapefruit and lime flavors; and Lemon Collins, bursting with lemon flavor. Available in variety 12-packs of 12-ounce slim cans, Seagram’s Escapes Cocktails are 100 calories per can and have a 5 percent ABV.

Red Diamond Coffee & Tea expands its beverage lineup with new 11-ounce bottles of ready-to-drink tea. The single-serve bottles come in three varieties: sweet, sugar-free with Splenda, and unsweet. With Red Diamond Readyto-Drink Teas, customers can enjoy high-quality tea that consistently delivers terrific color, body and a crisp, clean tea taste, according to the company. The products are made from simple ingredients: water, tea leaves, plus sugar or Splenda for the sweetened product. They are available nationwide in 40-count cases.

White Claw Hard Seltzer Chicago whiteclaw.com

Seagram’s Escapes Rochester, N.Y. seagramsescapes.com

Red Diamond Coffee & Tea Birmingham, Ala. reddiamond bevservice.com

that its SaltMe! Potato Chips are now available to foodservice operators. According to the company, this move is a major milestone in its mission to provide healthier, full-flavor potato chips that deliver 50 percent less sodium per serving to help people have better cardiovascular health. MicroSalt’s microscopic salt crystal technology enables consumers to lower their sodium intake without sacrificing flavor. SaltMe! Potato Chips come in two varieties: Original and BBQ. Each bag contains a 1-ounce serving. They are packed 24 to a case. MicroSalt Inc. West Palm Beach, Fla. saltme.com

5. MiniMini Chicles Gum Gerrit J. Verburg Co. expands its portfolio of nostalgic treats with MiniMini Chicles Gum. The whimsical chewing gum aims to transport consumers back to their childhood. Packaged in easy-to-tear, easy-to-pour pouches, MiniMini Chicles Gum is available in two varieties: fruit-flavored and sugar-free peppermint. The fruit-flavored gum comes in a 0.79-ounce pouch and features a medley of fruit flavors in bright colors. The sugar-free peppermint gum comes in a 0.58-ounce pouch and delivers a refreshing mint blast. Both varieties are gluten-free and contain no GMOs. Gerrit J. Verburg Co. Fenton, Mich. gerritjverburg.com/pages/miniminichiclegum

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PLAYING FAVORITES — CAN REALLY —

PAY OFF

STOCK UP ON THE MOST POPULAR ZYN VARIETIES

NEW PRODUCTS

9 8

6. Labatt Blue Light Seltzer Tart

7. Verte Absinthe Spirited Selzer

Labatt USA is bringing a new experience to hard seltzer drinking with the introduction of Labatt Blue Light Seltzer Tart, which mixes the tangy flavors of a fruited sour beer with the light drinkability of a summer seltzer. Variety packs are available featuring Tart Pineapple, Tart Passion Fruit, Tart Mango and Tart Guava varieties. Additionally, the fan-favorite Labatt Blue Light Seltzer variety pack is getting two new flavors: Watermelon Kiwi and Strawberry Guava. These portfolio updates align with consumer trends and relevant category data, meeting demand and filling white space across the beverage industry, according to the company.

OLDKNOW Bev Co., a spirited seltzer distillery, released the first absinthebased spirited seltzer in the United States. Absinthe is an herbaceous elixir with a long tradition of lore, according to the company. Its new Verte Absinthe Spirited Selzer is made from a combination of clean and crisp mountain water, spirit, and fresh herbs. It has a lower ABV compared to other ready-to-drink beverages at 5 percent. Available nationwide, Verte Absinthe Spirited Selzer aims to bring “an old-world style of drinking to a new generation.”

8. Perk2o Caffeinated 9. Buffalo Wing Spring Water Seasoned Pistachio Kernels Advanced Beverage Inc. introduces Perk2o, an ultrapure caffeinated spring water. Designed to serve as an alternative to energy drinks, Perk2o is formulated to give consumers a boost of energy while they’re on the move. The spring water is triple filtered with a pH level of 7+, infused with electrolytes, and contains 100 milligrams of caffeine — equivalent to a cup of coffee. Packaged in 16.9-ounce bottles, Perk2o comes in three flavors: Mango, Black Cherry, and Lemon. Advanced Beverage Inc. Union, N.J. perk2o.com

OLDKNOW Bev Co. Rabun Gap, Ga. oldknowbevco.com

Setton Farms, the nation’s second-largest pistachio grower and processor, is expanding its selection of premium seasoned pistachio kernels with the launch of a new variety. Inspired by the Setton family’s favorite Buffalo Wing recipe, the new Buffalo Wing Seasoned Pistachio Kernels feature shelled pistachios seasoned with a blend of spicy cayenne pepper, bold paprika, and a dash of vinegar. The Buffalo Wing variety joins Setton Farms’ established line of 5-ounce premium seasoned pistachio kernels in standup, resealable bags. Setton Farms Terra Bella, Calif. settonfarms.com

Labatt USA Buffalo, N.Y. labattusa.com

10. Southern Recipe Small Batch Refresh Southern Recipe Small Batch unveiled new packaging for its handcrafted small-batch pork rinds. The brand’s full lineup underwent this refresh. Packaging elements were lightened with brighter, bolder colors and clear flavor cues highlighting key product features added. The update also includes a refreshed logo, and an enhanced website and social presence. The refresh aims to speak to a more feminine aesthetic due to pork rinds being historically purchased by men, according to the company. The nationwide launch is being accompanied by an integrated campaign.

Southern Recipe Small Batch Lima, Ohio southernrecipesmallbatch.com

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SMALL OPERATOR

Sell Your Story

C-

RE RES

What is it about your store that makes it different from any other store in town? “ONLY ONE DOLLAR!”

This was the sales pitch of the young man working the hot and dusty marketplace in the Cambodian countryside. Holding up the trinkets on offer, he had been impersonating my shadow for the last two or three minutes since he had profiled me as a tourist — and a fresh target for a sale.

By Roy Strasburger, CEO, StrasGlobal

If you have ever been to one of these markets, you know that when you enter the square, you are immediately surrounded by children who want to sell you things. It’s almost like wading through chest-deep, squirming mud, keeping your arms above the head levels of the crowd as you try to make your way to a distant oasis of calm. Small hands hold up everything from pencils to woodcarvings, and the shouts of “Mister, Mister” is quite the cacophony. Most times, I smile and keep moving forward, hoping to outpace them. As a tourist, I wasn’t looking to buy anything of real substance. I did not need any home goods, live animals or fresh produce since I would be leaving town the next day. I was on the hunt for some type of souvenir I could take back to remind me of my visit — a tangible memory, if you will. “Finest quality and hand made. Just one dollar!” became his mantra as we walked, him loping along beside me while his

head swiveled, keeping an eye out for the police. When I stopped to inspect the items, I saw that they were hand-carved soapstone elephant figures that fit into the palm of my hand. Each elephant had its own identity and personality; a reflection of the time it took to make it and of the craftsman. Feeling relatively assured that the items had not been mass produced in China, I took the bait. “OK, tell me about these items. Where are they from?” The young man said his name was Samang and that he and his family lived in a village about five miles outside of town. According to Samang, he was a descendent of a long line of stoneworkers who created the temples and carved stone ornaments in the region. The figurines he was selling were made from local stones and were hand cut and carved by members of his family from the rubble that was left behind when the commercial quarriers finished their work with trucks and bulldozers. Samang said he had a family of two brothers and four sisters and that he was No. 5 in the line. His job was to take the carvings that the family and their friends made to the market every day. His sales proceeds were used to buy food for the family and pay the school fees of his siblings.

28 Convenience Store News C S N E W S . c o m

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SMALL OPERATOR

He then stopped his narrative, looked up at me from his 4-foot height, and held out his hands with the herd of pachyderms delicately balanced between his outstretched thumbs. Over the years, I have collected elephant figures during my travels. The figurines stand guard on my bookcase shelf and each time I look at one or pick one up, it viscerally reminds me of the location and the time when it was acquired. Now, I’m fully aware that Samang was probably an excellent salesman, and that the veracity of his story may be a little tenuous. However, I like to believe in the goodness of human nature, and I decided that I would take his story as true. I ended up buying a delightful green elephant with an intricate carving of a rug on its back and the faint shadows of eyelashes. I also bought three more to take back as souvenirs for some friends. To this day, that elephant sits on my shelf keeping guard over the stacks of papers and books on my desk. Young Samang did not sell me an elephant figurine. He sold me a story. There are dozens of other vendors selling soapstone carvings in the market who I could have bought from. However, Samang gave me the context and understanding of what he was doing and why he was doing it. Instead of just buying a souvenir from a shop, I could now believe I was supporting a family of ancient artisans who are still plying their craft despite the encroachment of modern technology. That is what made me buy from Samang and not someone else. The same principle applies to any type of retailing. The customer wants to know the story behind the store, as it were. What is it about this retail transaction that makes it different from any other store on the street or in town? As brick-and-mortar retailing is faced with increasing challenges from online platforms and delivery services, we need a way to bring customers into our shops rather than have them go to someone else’s location. Most of us sell pretty much the same things: soft drinks, coffee, candy, chips, cigarettes, and the like. What can you do to distinguish yourself? How do you create your story? I recommend carrying products from local producers and artisans, or specializing in a selection of products that are either culturally or ethnically significant for your community and your customers. Be serious about it — dedicate at least 30 percent of your shelf space to these types of items. More importantly, you and your staff need to know the details about the products: where they came from, who made them, and what they are used for. There should be a wide selection of products to show the customer that you’re committed.

It is critical that you promote the products and let people know you have them in stock. In addition to promotional signage, think about samplings, supplier demonstrations, or “meet the producer” days where you have the local producer set up a pop-up store at your location. Your story becomes one of helping local people succeed, or recognizing and supporting the local cultural or ethnic communities. A couple of examples I have seen recently: • On weekends, a c-store serves Indian food made from family recipes while a sitar player performs and their craft beer selection is featured; • A store owner near a dog park carries a wide range of pet supplies and gives out free dog treats to his canine customers; and • A retailer promotes the fact that he is the third generation of his family to run the store and features promotions based around family members and events. (“You’ve got to try Uncle Dave’s cheeseburger.”) If sourcing new products is not a viable strategy, then deeply embrace the local community. Support local organizations such as youth sports teams, a school, a food bank, a community center, or some other entity that has a direct impact on the people who live around your store and shop there. Hold events that help your neighbors such as fundraising car washes or local producers market days. If you have an event on your site, you’ll not only attract the friends and family of the participants, but also the people who support their causes or products. Many of these people might be new to your store and when they see you in the future, they will associate you with supporting their friends and families, which will give you an advantage. For example, take Bloom Healthy, a pop-up grocery concept developed by Marion Henson in New York. Marion’s mission is to make organic fruit and vegetables available to everyone, whether they can afford them or not. Her program allows customers to “pay it forward” and purchase produce on behalf of neighbors experiencing hard times. Helping people to help others eat healthily is a great story. Whatever you do, be consistent and be sincere. The story you tell should be your own and be evident when someone looks around your store. Of course, you also must be a good retailer and provide products that have a value to your customer. You can tell the best story in the world, but if the retail experience is bad, your customers won’t care about your story. CSN

Roy Strasburger is CEO of StrasGlobal, a privately held retail consulting, operations and management provider serving the small-format retail industry nationwide. StrasGlobal operates retail locations for companies that don’t have the desire, expertise or infrastructure to operate them. Learn more at strasglobal.com. Editor’s note: The opinions expressed in this article are the author’s and do not necessarily reflect the views of Convenience Store News. 30 Convenience Store News C S N E W S . c o m

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Mentos Gum Paperboard_ad_CSNews_0329_FA_OL.pdf

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ADVERTORIAL

Pabst Distribution Upsizes Jack Daniels Country Cocktails’ C-Store Footprint STR

SPEAKING WITH…ANDREW NORLIN, Senior Vice President National Accounts, and RYAN CALONG, Director National Accounts, Convenience, Pabst Brewing Co.

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Convenience Store News: Why are Pabst’s salesforce and distribution network able to reach more convenience stores than Brown-Forman’s did? f Am ’ ANDREW NORLIN: P b t p

CSN: FMBs’ availability is growing across multiple channels. What is unique about the c-store channel as it pertains to the segment and brand? t t RYAN CALONG: I 0 FMB m t p+

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For more information on how Jack Daniels Country Cocktails can grow sales, margins and loyal FMB customers, call A.N., 253-208-8463 or R.C., 832-397-7652; email us at anorlin@pabst.com, rcalong@pabst.com or visit https://pabst.com/brands/.

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COVER STORY

2022

34 Convenience Store News C S N E W S . c o m

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BACK BA CK TO THE

FUTURE MANY OF THE CONVENIENCE CHANNEL’S KEY FINANCIAL METRICS MIRROR THE INDUSTRY’S GLORY DAYS BY DON LONGO & ANGELA HANSON

MOST KEY COMPONENTS of the convenience store business shined last year as total U.S. c-store sales grew by 25 percent to $663.5 billion, according to the 2022 Convenience Store News Industry Report. Motor fuel revenue was up 40 percent, in-store sales (including foodservice) were up a solid 6.2 percent to reach a record high, and foodservice sales alone were up more than 20 percent after suffering a 10 percent pandemic-induced decline in 2020.

J UNE

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COVER STORY

2022

TOTAL CONVENIENCE STORE SALES (in billions)

•

TOTAL

•

MOTOR FUELS

STORE GROWTH ANALYSIS

•

IN-STORE

TOTAL

•

CHAINS

•

SINGLE STORES

$663.5 2021

148,026 2021

$405.3 $258.2

39.6% 60.4%

$532.9 2020

150,274

$289.8 $243.1

38.6%

2020

61.4% $648.8

152,720

$413.5

2019

37.7%

2019

$235.3

62.3% $661.4

153,237

$432.0

2018

37.7%

2018

$229.4

62.3% $616.3

2017

154,958 2017

$390.4

37.0% 63.0%

$225.9

MOTOR FUEL VOLUME

2021

2020

2019

2018

2017

132.9

123.3

153.7

154.1

154.3

7.8% change

-19.8% change

-0.3% change

-0.1% change

-0.3% change

Gallons (billions)

In addition, motor fuel gallons were up nearly 8 percent last year after dropping almost 20 percent the previous year as consumers stayed home for the most part during the worst of the COVID-19 pandemic.

In fact, many of the industry’s key financial metrics last year matched those of 2018 and 2017, when the industry was in the midst of a run of five-plus years of record results.

And despite higher operating expenses, including increases in wages and credit card processing costs, convenience store retailers posted a solid 4.7-percent increase in gross profits, reaching just a shade under $120 billion in 2021.

Total sales of $663.5 billion were slightly higher than the $648.8 billion posted in 2019, and significantly better than the pandemic-influenced year of 2020.

THE TOP LINE NUMBERS

Store count declined for the fifth year in a row. There are

36 Convenience Store News C S N E W S . c o m

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COVER STORY

2022

GROSS PROFIT DOLLAR MIX

INDUSTRY SALES MIX

•

IN-STORE

•

MOTOR FUELS

IN-STORE

•

MOTOR FUELS

2021

38.9% 62.1%

2021

58.6% 41.4%

2020

45.6% 54.4%

2020

59.4% 40.6%

36.3%

2019

63.7%

60.2%

2019

39.8%

INDUSTRY GROSS PROFIT 2021 $ BILLIONS

2020 $ BILLIONS

2019 $ BILLIONS

In-Store

$70.26

$68.08

$68.05

Motor Fuels

$49.72

$46.55

$45.00

TOTAL

$119.98

$114.63

$113.05

PRETAX PROFITS TOTAL INDUSTRY PRETAX PROFIT (in billions)

% CHANGE

PRETAX PROFIT PER STORE

% CHANGE

2021

$11.15

3.2%

$75,410

4.8%

2020

$10.80

2.1%

$71,928

2.9%

2019

$10.58

7.8%

$69,894

8.6%

2018

$9.81

5.9%

$64,371

6.6%

2017

$9.26

1.8%

$60,410

2.6%

now 148,026 convenience stores in the United States, a decline of 2,248 stores from the previous year. The drop was again mostly in single stores as there are now 2,860 fewer independent retailers, after a near 3,000store decline among single-store owners in 2020. Chain stores, meanwhile, increased their store count by 612 locations to now comprise 39.6 percent of the industry’s total stores. Although 2021 motor fuel volume was up over 2020 to 132.9 billion gallons sold, that figure was still below the 153-154 billion level of the pre-pandemic years, indicating that Americans still curtailed their driving in the past year. Employees working from home, the increased presence of electric vehicles, better gas mileage of combustion engines, and rising gas prices all likely contributed to less driving last year. Because of the increase in motor fuel dollar sales, the convenience store industry’s sales mix readjusted back to its traditional 60/40 split between motor fuels and in-store sales, respectively. In 2020, the ratio was closer to 54/46 motor fuels to in-store. The gross profit dollar mix tilted slightly toward motor fuels last year, but in-store still generated more gross profits at a 59/41 ratio. In previous years, the results were closer to 60/40.

DIRECT STORE OPERATING EXPENSES (dollars per store) 2021

2020

% CHANGE

Wages

$435,708

$393,949

10.6%

Payroll taxes

$18,178

$17,563

3.5%

Workers’ compensation

$16,819

$15,602

7.8%

Health insurance

$37,506

$34,600

8.4%

Other benefits

$6,213

$5,951

4.4%

Labor subtotal

$514,423

$467,665

10.0%

Credit card fees

$112,749

$91,666

23.0%

All other direct store operating expenses

$227,311

$201,875

12.6%

TOTAL

$854,484

$761,206

12.3%

38 Convenience Store News C S N E W S . c o m

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Sweet profits. Naturally. Bring natural sweetness and profitability to your C-Store Coffee Counter with N’Robed – a new kind of sugar. Our innovative enrobing process coats sugar crystals with reb-M from fermented sugarcane – making N’Robed sugar twice as sweet with half the calories and carbs as traditional sugar. Because customers only use ½ the amount, N’Robed Sugar Crystals deliver significant cost savings, better yields, reduced storage and many other operational benefits.

Popular flavors and creamers under the N’JOY Brand let customers make over 100 varieties of coffee “their way.”

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COVER STORY

2022

FIVE-YEAR TREND: WAGES (dollars per store)

2021

change

2021

$435,708

2020

$393,949

2019

$354,271

2018

$330,584

2017

$311,284

OPERATIONS RESULTS Direct store operating expenses increased at a faster pace last year, totaling $854,484 per store, an increase of 12.3 percent. In 2020, expenses were up 10.6 percent, fueled by lots of pandemic-related safety spending.

EMPLOYEE TURNOVER

2021

2020

2019

Store associates

160%

151%

136%

Store managers

86%

42%

35%

Labor, including wages, payroll taxes, workers compensation, health insurance and other benefits, comprised the largest share of operating expenses at $514,423, a 10-percent increase.

TRANSACTIONS

2021

2020

% change

In-store transactions per week

3,131

2,888

8.4%

Motor fuel transactions per week

1,914

1,828

4.7%

Average in-store transaction

$11.41

$10.78

5.8%

Average motor fuel transaction

$32.89

$27.05

21.6%

Average gallons per transaction

9.8

8.9

10.6%

C-STORE SQUARE FOOTAGE 2021

2020

2019

Sales area

2,600

2,530

2,425

Non-sales area

820

800

Total store size

3,420

3,350

3,225

Total property size

30,020

29,975

27,900

IN-STORE SALES PER STORE

Sales % change

2021

$1,746,649 7.9%

2020

$1,619,031 4.2%

2019

$1,554,276 3.2%

2018

$1,505,376 2.2%

2017

$1,473,386 1.5%

Industrywide gross profits increased nearly 5 percent to $119.98 billion in 2021, a significant increase compared to the 1.4-percent gain of the previous year. Motor fuel profits were up 6.8 percent to $49.72 billion, and in-store profits were up 3.2 percent to $70.26 billion. Pretax profits climbed to $11.15 billion, an increase of 3.2 percent or $75,410 per store.

However, the biggest percentage increase in expenses came from rising credit card fees. These fees on card transactions ballooned by 23 percent last year to $112,749 per store. Credit card fees are likely to continue to increase this year as Visa and Mastercard, as of press time, were set to increase the fees despite the objections of merchants and a bipartisan group of politicians. “As Americans are dealing with the highest rate of inflation in decades, your profits are already high enough and any further fee increases is simply taking advantage of vulnerable Americans,” two Democrat and two Republican lawmakers wrote in a letter to the credit card companies

IN-STORE MERCHANDISE SALES In-store merchandise sales were up 3.7 percent to just under $215 billion last year. But it was foodservice sales that really shined. The category, which includes prepared food and hot, cold and frozen dispensed beverages, increased by 20.5 percent to $43.2 billion in 2021 sales. On a per-store basis, in-store sales topped $1.7 million, a 7.9-percent increase year over year.

TOTAL MERCHANDISE & FOODSERVICE SALES

Sales

Total

Merchandise Foodservice

Total

% change

2021

$258.2

$214.9 $43.2

6.2%

3.7%

20.5%

2020

$243.1

$207.2 $35.9

3.3%

6.0%

-9.9%

2019

$235.3

$195.5 $39.8

2.6%

2.1%

5.2%

Merchandise

Foodservice

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Cigarettes retained its rank as the No. 1 product category in terms of sales per store. Cigarette dollar sales per store rose a modest 1.9 percent, while the category’s share of total in-store sales fell to 25.9 percent, from 27.43 percent in 2020.

With its big comeback in 2021, foodservice increased its share of in-store sales to 16.75 percent. Per-store foodservice sales were up 22.5 percent. Among the segments, prepared food was up 24.6 percent, frozen dispensed beverages were up 21.6 percent, hot dispensed

IN-STORE SALES BY CATEGORY PERCENT OF IN-STORE SALES

SALES PER STORE

TOTAL INDUSTRY SALES (in millions)

2021

2020

2021

% change

2021

% change

Cigarettes

25.90%

27.43%

$452,459

1.9%

$66,873

0.3%

Packaged beverages

13.57%

13.00%

$237,042

12.7%

$35,035

10.9%

Beer/malt beverages

9.29%

10.15%

$162,199

-1.3%

$23,973

-2.8%

Other tobacco products

8.14%

8.12%

$142,091

8.1%

$21,001

6.4%

Edible grocery

5.02%

5.14%

$87,637

5.3%

$12,952

3.7%

General merchandise

3.44%

3.53%

$60,103

5.3%

$8,884

3.6%

Candy

3.29%

3.12%

$57,482

13.7%

$8,496

11.9%

Salty snacks

2.77%

2.67%

$48,294

11.9%

$7,138

10.2%

Wine & liquor

1.98%

1.97%

$34,587

8.5%

$5,112

6.8%

Non-edible grocery

1.61%

1.79%

$28,153

-2.6%

$4,161

-4.1%

Fluid milk products

1.29%

1.36%

$22,617

2.5%

$3,343

0.9%

Alternative snacks

1.22%

1.10%

$21,383

20.6%

$3,160

18.7%

Ice cream & frozen novelties

0.94%

0.96%

$16,437

5.5%

$2,429

3.8%

Health & beauty care

0.66%

0.67%

$11,441

5.7%

$1,691

4.1%

Ice

0.59%

0.58%

$10,289

9.6%

$1,521

7.8%

Packaged sweet snacks

0.27%

$4,790

10.2%

$708

8.5%

Publications

0.16%

0.21%

$2,776

-20.0%

$410

-21.1%

All other merchandise

3.11%

3.20%

$54,393

4.9%

$8,039

3.2%

Merchandise Subtotal

83.25%

85.25%

$1,454,173

5.4%

$214,926

3.7%

(prepared on-site or off-site)

12.31%

10.65%

$214,941

24.6%

$31,768

22.7%

Hot dispensed beverages

2.60%

2.38%

$45,419

18.1%

$6,713

16.2%

Cold dispensed beverages

1.24%

1.20%

$21,709

12.0%

$3,209

10.3%

Frozen dispensed beverages

0.60%

0.53%

$10,407

21.6%

$1,538

19.7%

Foodservice Subtotal

16.75%

14.75%

$292,476

22.5%

$43,228

20.5%

100.00%

$1,746,649

7.9%

$258,154

6.2%

MERCHANDISE

FOODSERVICE Prepared food

TOTAL IN-STORE

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MOTOR FUEL SALES & MARGINS 2021

2020

% change

$405.3 $289.8

Dollar sales (in billions)

39.9%

Gallons sold (in billions)

132.9

123.3

7.8%

Gross margin cents per gallon

29.4

28.1

4.6%

Average sales price per gallon* $3.05

$2.35

29.8%.

*Weighted average, all grades and diesel

RETAIL GASOLINE PRICES (per gallon)

beverages were up 18.1 percent, and cold dispensed beverages were up 12 percent last year. Other categories that registered double-digit per-store sales gains last year were alternative snacks (up 20.6 percent), candy (up 13.7 percent), packaged beverages (up 12.7 percent), salty snacks (up 11.9 percent), and packaged sweet snacks (up 10.2 percent). Many of these categories are bouncing back after having been adversely affected by the pandemic in 2020.

MOTOR FUELS

Price

% change

2021

$3.05

29.8%

2020

$2.35

-12.6%

2019

$2.69

-3.9%

2018

$2.80

10.7%

2017

$2.53

12.4%

The big story in motor fuels is the big run-up in retail gasoline prices. The 2021 weighted average of all grades of gasoline and diesel fuel was $3.05 per gallon, an increase of nearly 30 percent from the previous year. That price increase fueled a near 40-percent increase in revenues from motor fuels last year, while c-stores sold 7.8 percent more gallons. The average gross margin per gallon was up 4.6 percent to 29.4 cents per gallon.

Price includes dollars per gallon for all grades, all formulations

FIVE-YEAR TREND: MOTOR FUELS 2021

2020

2019

2018

2017

Dollar sales (in billions)

$405.3

$289.8

$413.5

$432.0

$390.4

Gallons sold (in billions)

132.9

123.3

153.7

154.1

154.3

STORES SELLING MOTOR FUELS

The percentage of convenience stores selling gasoline declined slightly to 78.8 percent, down from 80.9 percent in 2020. About 116,600 c-stores sold fuel last year, compared to about 121,500 the previous year. Looking at the past five years, dollar sales of motor fuels peaked in 2018 at $432 billion, and dipped to as low as $289.8 billion in 2020 during the pandemic. Gallons sold have declined every year from 2017 to 2020. Motor fuel volume bounced back last year, but was still about $20 billion less than the 2019 level.

CIGARETTES

2021

78.8% 2020

80.9% 2019

79.9%

Cigarette sales rose for the second year in a row, reaching $452,459 in average sales per store. However, that growth slowed significantly from the previous year: average sales per store increased 1.9 percent in 2021, down from 4.3-percent growth in 2020. Imported cigarettes, in particular, had a rocky year. Average sales per store in this subcategory dropped a precipitous 18.2 percent in 2021, just a year after this segment posted the strongest growth within the category. Branded discount cigarettes also declined 0.4 percent in average sales per store. Premium cigarettes remain comfortably ahead of all the other segments combined, although its growth in average sales per store slowed to 2.2 percent in 2021, down from 4.7 percent two years ago. Subgeneric/private label cigarettes saw the strongest percentage growth at 3.6 percent, but this marks another sharp drop from the 16.6-percent increase this segment saw in

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CATEGORY ANALYSIS: CIGARETTES SALES PER STORE

INDUSTRY TOTAL (in millions)

2021

% change

2021

% change

Premium

$373,809

2.2%

$55,249

0.6%

Branded discount

$59,441

-0.4%

$8,785

-2.0%

Subgeneric/ private label

$17,999

3.6%

$2,660

2.0%

Fourth tier

$1,190

0.9%

$176

-0.7%

Imports

$20

-19.5%

TOTAL

$452,459

2020. Fourth tier cigarettes grew by just under 1 percentage point last year. As a percentage of total in-store sales, cigarettes decreased by about 1.5 points to 25.90 percent, returning to a years-long pattern of gradual declines after a small bump up in 2020. Cigarette unit volume fell 6 percent in 2021, the largest drop in the last five years.

OTHER TOBACCO PRODUCTS -18.2% 1.9%

$66,873

0.3%

FIVE-YEAR TREND: CIGARETTES 2021

2020

2019

2018

2017

Percent change in total sales

0.3%

3.5%

-1.5%

-2.9%

1.1%

Percent change in total unit volume

-6.0%

-2.8%

-5.5%

-3.4%

-3.2%

25.90%

27.43%

27.38%

28.50%

29.82%

Share of in-store sales

Other tobacco products (OTP) had a better year overall than cigarettes. While OTP growth slowed from the previous year, the category still saw average sales per store increase 8.1 percent to $142,091 in 2021. Electronic cigarettes saw the strongest segment growth, up 16.6 percent in average sales per store, a jump of more than 10 percentage points from 2020. Smokeless tobacco saw the second strongest growth at 4.7 percent, although this increase marked a drop of more than 5 points vs. the previous year. Still, smokeless is the top seller within the OTP category. For the second year in a row, pipe/cigarette tobacco was the only segment of OTP to see sales decline, with average sales per store falling 13.3 percent.

CATEGORY ANALYSIS: OTHER TOBACCO PRODUCTS SALES PER STORE

INDUSTRY TOTAL (in millions)

OTP sales have experienced growth for the last five years, yet 2021 marked the smallest percentage change in total sales during that time. The category peaked at 23.5-percent sales growth in 2018. OTP unit volume also declined 1.4 percent last year, marking the first instance of negative unit growth in the last five years.

2021

% change

2021

% change

Smokeless

$60,251

4.7%

$8,905

3.1%

Electronic cigarettes

$50,257

16.6%

$7,428

14.8%

Cigars

$29,350

2.8%

$4,338

1.2%

The category’s share of total in-store sales remained fairly flat at 8.14 percent. However, this does represent a five-year high point for OTP’s in-store share.

Papers

$1,746

2.8%

$258

1.2%

FOODSERVICE

Pipe/cigarette tobacco

$467

-13.3%

$69

-14.6%

Other

$20

n/a

TOTAL

$142,091

8.1%

$21,001

n/a 6.4%

FIVE-YEAR TREND: OTHER TOBACCO PRODUCTS 2021

2020

2019

2018

2017

Percent change in total sales

6.4%

8.3%

13.7%

23.5%

11.4%

Percent change in total unit volume

-1.4%

5.3%

0.8%

5.5%

9.0%

Share of in-store sales

8.14%

8.12%

7.74%

6.84%

5.62%

2021 was a year of recovery for the foodservice category, which suffered significant losses in 2020, following years of growth to become one of the industry’s most important in-store categories. Average sales per store of foodservice rose a whopping 22.5 percent to $292,476, clearly demonstrating that foodservice is rebounding in a big way. All segments within the category experienced double-digit growth. Prepared food led the way, with average sales per store rising nearly 25 percent, followed by hot dispensed beverages (up 18.1 percent), frozen dispensed beverages (up 21.6 percent), and cold dispensed beverages (up 12 percent). When looking at total industry sales of foodservice, the category more than reversed the 9.9-percent

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decline it experienced in 2020, which was the only year of negative sales growth for the foodservice category in the last five years.

CATEGORY ANALYSIS: PACKAGED BEVERAGES

Foodservice’s share of total in-store sales rose 2 percentage points last year to reach 16.75 percent, the second highest it has been in the last five years.

CATEGORY ANALYSIS:

2021

INDUSTRY TOTAL (in millions)

% change

2021

% change

Energy/alternative drinks

$74,457

12.8%

$11,005

11.0%

INDUSTRY TOTAL (in millions)

Carbonated soft drinks

$59,206

6.2%

$8,751

4.5%

FOODSERVICE SALES PER STORE

SALES PER STORE

2021

% change

2021

% change

Sports drinks

$27,072

23.2%

$4,001

21.3%

Prepared food (prepared on-site or off-site)

$214,941

24.6%

$31,768

22.7%

Bottled water

$23,056

13.6%

$3,408

11.8%

Hot dispensed beverages

$45,419

18.1%

$6,713

16.2%

Juice/juice drinks

$15,319

10.7%

$2,264

9.0%

Cold dispensed beverages

$21,709

12.0%

$3,209

10.3%

Enhanced water

$12,510

29.9%

$1,849

27.9%

Frozen dispensed beverages

$10,407

21.6%

$1,538

19.7%

Iced tea (ready-to-drink)

$10,381

4.9%

$1,534

3.3%

TOTAL

$292,476

22.5%

$43,228

20.5%

Other

$15,041

15.6%

$2,223

13.8%

TOTAL

$237,042

12.7%

$35,035

10.9%

FIVE-YEAR TREND: FOODSERVICE 2021

2020

2019

2018

2017

Percent change in total sales

20.5%

-9.9%

5.2%

2.4%

3.6%

Share of in-store sales

16.75%

14.75%

16.91%

16.50%

16.38%

CATEGORY ANALYSIS: BEER/MALT BEVERAGES SALES PER STORE

Premium

INDUSTRY TOTAL (in millions)

2021

% change

2021

% change

$60,589

-7.5%

$8,955

-8.9%

FIVE-YEAR TREND: PACKAGED BEVERAGES 2021

2020

2019

2018

2017

Percent change in total sales

10.9%

3.9%

4.3%

3.2%

0.2%

Percent change in total unit volume

5.2%

-0.7%

-0.3%

0.9%

-2.20%

13.57%

13.00%

12.92%

12.71%

12.50%

Share of in-store sales

FIVE-YEAR TREND: BEER/MALT BEVERAGES 2021

2020

2019

2018

2017

-2.8%

14.0%

1.0%

0.8%

0.5%

Imported

$36,435

8.0%

$5,385

6.3%

Percent change in total sales

Flavored malt beverage

$22,395

11.6%

$3,310

9.9%

Percent change in total unit volume

-5.0%

5.4%

0.2%

1.7%

3.0%

Super premium

$13,403

3.4%

$1,981

1.7%

Share of in-store sales

9.29%

10.15%

9.20%

9.34%

9.41%

Popular

$9,702

-5.5%

$1,434

-6.9%

Budget

$9,655

-13.7%

$1,427

-15.0%

Microbrew/craft

$7,923

-3.0%

$1,171

-4.6%

Malt liquor

$1,962

-13.6%

$290

-15.0%

Non-alcoholic

$135

19.5%

$20

17.6%

TOTAL

$162,199

-1.3%

$23,973

-2.8%

STORES SELLING BEER 2021

Percent of stores selling beer 78.0% Percent of in-store sales 9.46% FOR STORES SELLING BEER: Average sales per store $207,947 Percent of in-store sales 12.13%

2020

75.2% 10.15% $218,425 13.49%

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NEW FL

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CATEGORY ANALYSIS:

CANDY

SALTY SNACKS SALES PER STORE

SALES PER STORE

INDUSTRY TOTAL (in millions)

2021

% change

2021

% change

Potato chips

$11,922

11.1%

$1,762

9.4%

8.2%

Tortilla/corn chips

$9,371

13.8%

$1,385

12.0%

$978

13.1%

Nuts/seeds

$5,213

9.6%

$770

7.9%

6.5%

$930

4.8%

Puffed cheese

$4,937

10.3%

$730

8.5%

$2,525

14.9%

$373

13.1%

Mixed

$2,440

11.7%

$361

10.0%

Candy rolls, mints, drops

$2,369

17.8%

$350

16.1%

Pretzels

$2,091

21.7%

$309

19.6%

TOTAL

$57,482

13.7%

$8,496

11.9%

Popcorn (ready-to-eat)

$2,074

15.7%

$307

13.9%

Crackers

$2,066

14.0%

$305

12.1%

Other

$8,180

9.9%

$1,209

8.1%

TOTAL

$48,294

11.9%

$7,138

10.2%

2021

% change

2021

% change

Bagged/repackaged peg candy

$25,223

17.2%

$3,728

15.3%

Chocolate bars/packs

$14,458

9.9%

$2,137

Novelties/seasonal

$6,615

15.0%

Gum

$6,292

Non-chocolate bars/packs

FIVE-YEAR TREND: CANDY 2021

2020

2019

2018

2017

Percent change in total sales

11.9%

1.7%

4.0%

0.1%

1.6%

Percent change in total unit volume

5.5%

-5.7%

-3.2%

-1.8%

-2.0%

3.29%

3.12%

3.17%

3.13%

3.17%

Share of in-store sales

CATEGORY ANALYSIS:

FIVE-YEAR TREND: SALTY SNACKS 2021

2020

2019

2018

2017

Percent change in total sales

10.2%

-4.1%

3.6%

2.9%

4.5%

Percent change in total unit volume

4.1%

-10.5%

-1.1%

-0.5%

-1.9%

2.77%

2.67%

2.87%

2.85%

2.81%

Share of in-store sales

ALTERNATIVE SNACKS SALES PER STORE

INDUSTRY TOTAL (in millions)

2021

% change

2021

% change

Meat snacks

$14,581

21.6%

$2,155

19.7%

Health/energy bars

$4,498

16.9%

$665

15.0%

Granola/yogurt bars

$1,688

23.0%

$249

21.1%

Other

$616

$91

15.3%

TOTAL

$21,383

$3,160

18.7%

17.1% 20.6%

FIVE-YEAR TREND: ALTERNATIVE SNACKS 2021

2020

2019

2018

2017

Percent change in total sales

18.7%

2.3%

2.8%

1.8%

1.4%

Percent change in total unit volume

8.7%

-4.8%

-1.2%

-0.1%

-1.8%

Share of in-store sales

1.22%

1.10%

1.11%

1.10%

PACKAGED BEVERAGES The packaged beverages category had a good year across the board in 2021, following mixed results the previous year. Average sales per store increased 12.7 percent to $237,042, a nice jump from the 4.7-percent growth the cold vault experienced in 2020. Consumers continue to be interested in beverages with functional benefits as enhanced water saw the largest increase in average sales per store (up 29.9 percent), followed by sports drinks (up 23.2 percent), which ranked third in the category for the second year in a row. Energy/alternative drinks grew 12.8 percent and remain the category’s top seller. Carbonated soft drinks (CSDs), the No. 2 segment, grew for a second year after multiple years of flat to minimal growth. CSDs increased 6.2 percent in average sales per store. This could indicate that consumers who turned to the cold vault over the soda fountain during the pandemic are making it a habit despite the resurrection of dispensed beverages.

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CATEGORY ANALYSIS:

EDIBLE GROCERY

NON-EDIBLE GROCERY SALES PER STORE

SALES PER STORE

INDUSTRY TOTAL (in millions)

2021

% change

2021

% change

Paper, plastic, foil products

$9,897

-7.2%

$1,463

-8.7%

9.0%

Pet care

$6,869

6.4%

$1,015

4.8%

$1,302

5.5%

Household care

$6,497

-10.0%

$960

-11.4%

-0.4%

$1,055

-1.9%

Laundry care

$3,944

10.7%

$583

9.0%

$3,664

6.4%

$542

4.7%

Dish care

$866

-6.4%

$128

-8.0%

Packaged coffee, tea

$2,564

-1.5%

$379

-3.0%

Other

$80

0.6%

$12

-4.5%

Other

$20,008

-0.8%

$2,957

-2.3%

TOTAL

$28,153

-2.6%

$4,161

-4.1%

TOTAL

$87,637

5.3%

$12,952

3.7%

2021

% change

2021

% change

Other dairy/deli products

$34,574

8.7%

$5,110

7.0%

Frozen foods

$10,876

10.7%

$1,607

Condiments

$8,812

7.1%

Packaged bread

$7,139

Breakfast cereal

FIVE-YEAR TREND: EDIBLE GROCERY

FIVE-YEAR TREND: NON-EDIBLE GROCERY

2021

2020

2019

2018

2017

Percent change in total sales

3.7%

9.6%

3.9%

-1.1%

-0.6%

Percent change in total unit volume

1.1%

5.2%

1.3%

Share of in-store sales

5.02%

5.14%

4.85%

4.78%

2021

2020

2019

2018

2017

Percent change in total sales

-4.1%

14.2%

3.8%

-2.4%

-0.8%

-1.7%

Percent change in total unit volume

-6.6%

5.6%

1.2%

-3.7%

-4.2%

4.98%

Share of in-store sales

1.61%

1.79%

1.62%

1.60%

1.66%

Bottled water and ready-to-drink iced tea, which were the only segments to see average sales per store decline in 2020, both saw per-store sales increase in 2021, up 13.6 percent and 4.9 percent, respectively. The category’s total unit volume also grew 5.2 percent in 2021 — a significant figure both because it was the first notable increase in five years, and because it reverses the slight decline that occurred in 2020 despite the widespread shutdown of dispensed beverages.

Premium beer maintained its spot atop the category, but saw average sales per store decline 7.5 percent. Popular, budget, microbrew/craft and malt liquor also saw average sales per store decrease, with budget and malt liquor posting the biggest drops. Unit volume fell 5 percent in 2021, down from 5.4-percent unit growth the previous year.

Packaged beverages’ share of total in-store sales stands at 13.57 percent, about a half-point higher than a year ago.

The category’s share of total in-store sales decreased to 9.29 percent from 10.15 percent a year ago. Seventyeight percent of all U.S. c-stores sold beer and malt beverages in 2021.

BEER & MALT BEVERAGES

CANDY

Sales of beer and malt beverages contracted in 2021 following significant, likely pandemic-related growth the previous year. Average sales per store fell 1.3 percent. There was much dichotomy in the category, with some segments seeing solid growth and others seeing notable declines.

Following a year of slower growth due to declining foot traffic, candy is another category that bounced back in 2021. Average sales per store rose 13.7 percent, up from 1.7-percent growth in 2020, with all segments turning in a positive performance.

Flavored malt beverages and imported beer saw the most impressive per-store sales growth at 11.6 percent and 8 percent, respectively. Non-alcoholic beer increased nearly 20 percent in average sales per store, though the segment’s actual dollars remain low.

Candy rolls/mints/drops saw the highest percentage growth in average sales per store at 17.8 percent, but the segment remains the smallest within the category. Bagged/repackaged peg candy closely followed, with per-store sales rising 17.2 percent. It is the No. 1 candy segment.

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Visit tysonfoodservice.com for product information, resources and market-relevant solutions backed by our trusted brands. ©2022 Tyson Foods, Inc. Trademarks and registered trademarks are owned by Tyson Foods, Inc. or its subsidiaries, or used under license. All trademarks or logos are the property of their respective owners.

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COVER STORY

2022

CATEGORY ANALYSIS: GENERAL MERCHANDISE SALES PER STORE

INDUSTRY TOTAL (in millions)

2021

% change

2021

% change

Smoking accessories

$27,461

3.4%

$4,059

1.8%

Telecommunications hardware

$8,177

25.7%

$1,209

23.7%

Hardware, tools, housewares

$7,651

2.2%

$1,131

0.6%

Seasonal

$7,334

1.6%

$1,084

0.0%

Batteries

$5,876

-2.0%

$869

-3.5%

School & office supplies

$2,628

9.9%

$388

8.2%

Other

$976

3.2%

$144

1.6%

TOTAL

$60,103

5.3%

$8,884

3.6%

FIVE-YEAR TREND: GENERAL MERCHANDISE 2021

2020

2019

2018

2017

Percent change in total sales

3.6%

3.5%

-2.1%

4.6%

Percent change in total unit volume

-2.7%

-2.4%

-5.2%

-3.3%

-6.4%

Share of in-store sales

3.44%

3.53%

3.52%

3.69%

3.62%

Chocolate bars/packs and gum experienced the lowest percentage growth, but still saw average sales per store increase 9.9 percent and 6.5 percent, respectively. 2021 marked a high point for the category’s total industry sales growth over the last five years, outpacing the previous high point of 4-percent growth in 2019. Candy unit volume also saw strong growth at 5.5 percent, marking the first time in five years this metric has not declined. Candy’s share of total in-store sales rose less than 1 percentage point to 3.29 percent.

SNACKS Salty snacks reversed its 3.3-percent decline of the previous year to increase average sales per store by 11.9 percent in 2021 to $48,294, with all segments seeing growth. Potato chips, the leading segment in the category, saw average sales per store rise 11.1 percent, while No. 2 tortilla/corn chips saw a 13.8-percent increase. Pretzels experienced the largest growth at 21.7 percent, but remained comparatively low in actual dollars. All other segments saw double-digit growth in per-store sales with the exception of nuts/seeds and other salty snacks, which increased 9.6 percent and 9.9 percent, respectively. Looking at the five-year trend, salty snacks posted its highest growth percentage in the last five years in 2021. Unit volume increased 4.1 percent, the first time it has not declined in the last five years. Salty snacks’ share of total in-store sales remained virtually unchanged at 2.77 percent. The alternative snacks category experienced even stronger growth in 2021, with average sales per store increasing 20.6 percent to $21,383, well above the 3.1-percent growth it saw in 2020. All segments within the category were on the rise. Meat snacks, the segment leader, saw average sales per store increase 21.6 percent. Granola/ yogurt bars (up 23 percent), health/energy bars (up 16.9 percent) and other alternative snacks (up 17.1 percent) also had strong sales increases. Last year marked the continuation of a fiveyear growth trend for alternative snacks, but significantly outpaced the growth of the previous four years. Unit volume rose 8.7 percent, up from a decline of 4.8 percent in 2020, marking the first time in five years that this category’s unit volume has grown.

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Despite all this growth, however, alternative snacks’ share of total in-store sales increased by less than 1 percentage point to 1.22 percent.

2022

CATEGORY ANALYSIS: HEALTH & BEAUTY CARE SALES PER STORE

EDIBLE GROCERY Edible grocery sales in the convenience channel grew in 2021, but that growth slowed compared to the previous year when many consumers were looking to make quicker stock-up trips and seeking alternatives to grocery stores due to the pandemic. Average sales per store of edible grocery rose 5.3 percent to $87,637, down from 10.5-percent growth in 2020. Within the category, average per-store sales of other dairy/deli products increased 8.7 percent and generated the most actual dollars. Frozen foods (up 10.7 percent), condiments (up 7.1 percent) and breakfast cereal (up 6.4 percent) also grew. Conversely, sales declined for packaged bread and packaged coffee/tea. Unit volume increased just 1.1 percent, close to the volume growth seen in 2019 and 2018. Edible grocery’s share of in-store sales remained flat at 5.02 percent.

INDUSTRY TOTAL (in millions)

2021

% change

2021

% change

Liquid vitamins, supplements, energy shots

$3,048

9.8%

$450

7.9%

Vitamins, supplements

$2,109

25.2%

$312

23.0%

Analgesics

$1,578

10.8%

$233

9.1%

Cold, cough remedies

$1,347

-10.2%

$199

-11.7%

Grooming aids

$755

-24.5%

$112

-25.5%

Stomach remedies

$565

16.3%

$84

13.7%

Family planning

$544

2.1%

$80

1.1%

Skin care, lotions, external care

$487

-1.2%

$72

-3.3%

Other

$1,008

8.8%

$149

7.4%

TOTAL

$11,441

5.7%

$1,691

4.1%

NON-EDIBLE GROCERY Like the edible grocery category, non-edible grocery sales in the convenience channel also rose significantly during the first year of the pandemic, but fell in 2021 as consumers resumed their previous shopping routines. Average sales per store decreased 2.6 percent to $28,153. Household care, the segment that saw the largest per-store sales increase in 2020 at 25.9 percent, saw the largest sales decrease in 2021, declining 10 percent. Average per-store sales of paper/ plastic/foil products and dish care also declined by 7.2 percent and 6.4 percent, respectively. On the positive side, laundry care saw the highest growth, rising 10.7 percent in average sales per store, while pet care sales also rose 6.4 percent.

FIVE-YEAR TREND: HEALTH & BEAUTY CARE 2021

2020

2019

2018

2017

Percent change in total sales

4.1%

3.4%

0.6%

-1.9%

1.6%

Percent change in total unit volume

2.8%

-3.2%

-1.7%

-2.4%

-3.2%

0.66%

0.67%

0.68%

0.70%

Share of in-store sales

Unit volume fell 6.6 percent, down from 5.6-percent growth the prior year. Non-edible grocery’s share of total in-store sales also dropped to 1.61 percent from 1.79 percent in 2020. The current share is in line with the 2019 level.

GENERAL MERCHANDISE The general merchandise category increased 5.3 percent in average sales per store to $60,103 in 2021, boosted by positive rates of growth among most segments. Smoking accessories — by far, the best-selling segment in the category — saw average sales per

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store increase 3.4 percent last year, up from just under 1-percent growth in 2020. Average sales of telecommunications hardware jumped an impressive 25.7 percent, although the segment remains middle of the road in terms of actual dollars. All other segments also saw per-store sales increase with the exception of batteries, which fell 2 percent year over year. Unit volume fell 2.7 percent, continuing a fiveyear streak of volume decreases. General merchandise’s share of total in-store sales is holding steady at 3.44 percent.

HEALTH & BEAUTY CARE The health and beauty care category (HBC) saw mixed results in 2021, but on the whole, it was a solid year for the category. Average sales per store of HBC increased 5.7 percent to $11,441, building upon 4.2-percent growth the prior year. Vitamins/supplements, the second-largest segment in the category, experienced the greatest sales growth, rising 25.2 percent in average sales per store. Stomach remedies (up 16.3 percent) and analgesics (up 10.8 percent) also saw per-store sales increases. Liquid vitamins/supplements, the largest segment, posted a 9.8-percent increase in average sales per store. On the other end of the spectrum, grooming aids saw a significant drop in per-store sales, declining 24.5 percent. The HBC category experienced its largest sales growth in the last five years. Unit volume increased 2.8 percent, marking the first increase after four years of declines. The category’s share of total in-store sales, though, saw no change at 0.66 percent. CSN

2022

2022 REPORT CARD AT A GLANCE TOTAL SALES: B Total U.S. convenience store sales grew by nearly 25 percent to $663.5 billion. Usually such a huge increase would warrant an A grade, but we have to consider that this increase comes off a dismal showing the previous year. IN-STORE SALES: A Inside-the-store sales, including foodservice, were up a solid 6.2 percent, reaching a record high. MOTOR FUELS BUSINESS: B Dollar sales of motor fuels were up 40 percent. Volume, however, despite being up 8 percent from 2020, was still off the previous years’ levels. Most of the dollar increase could be attributed to higher pump prices, driven up by rising oil prices. STORE COUNT: CThe total number of c-stores in the United States declined for the fifth year in a row, with single stores completely accounting for the decline. At least chains added some stores. PROFITS: A Despite higher operating expenses, including increases in wages and credit card processing costs, convenience store retailers posted a solid 4.7-percent increase in gross profits to reach just a shade under $120 billion in 2021. FOODSERVICE SALES: A With a big comeback in 2021, foodservice sales were up more than 20 percent after suffering a 10 percent pandemic-induced decline in 2020. Foodservice increased its share of total in-store sales to 16.75 percent, up from 14.75 percent the prior year.

METHODOLOGY The 47th annual Convenience Store News Industry Report features data from a variety of sources in order to provide a complete picture of the financial health of the convenience store industry. Store census data was provided by Nielsen/TDLinx, which maintains a national count of c-store locations based on NACS’ definition of a convenience store. Sales data for most categories was provided by The Nielsen Co. from its Convenience Track retail measurement service, which is based on UPC sales and other methods that are counted through the use of point-of-sale scan data, as well as from data captured via electronic invoice and sales audits. Additionally, non-UPC coded merchandise, including prepared food and hot, cold, and frozen dispensed beverages, was provided by a retailer survey conducted by Convenience Store News. Government sources include the Census Bureau of Labor Statistics, Department of Energy, and Federal Tax Administration.

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1:40 PM

CMY

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FOODSERVICE

A Common Goal Branded partners are helping convenience store operators navigate the new foodservice landscape By Brian Berk ALTHOUGH THE FUTURE trajectory of the COVID19 pandemic remains unknown, one certainty is that consumers are returning to in-store convenience store visits. In fact, some industry insiders report that the convenience channel is close to returning to its pre-COVID levels in terms of store visits.

Once inside a convenience store, customers overwhelmingly take part in the foodservice experience, something c-store operators can often count on for strong margins. However, a retailer must decide between having its own foodservice offer or forging a partnership with regional or national restaurant brands. Partnering with a brand can provide specific benefits, with name recognition perhaps being the biggest one. Max Arnold & Sons, which operates 21 c-stores in western Kentucky and Franklin, Tenn., partners with Hunt Brothers Pizza at nine locations. The retailer has worked with Nashville-based Hunt Brothers for a decade. “We selected Hunt Brothers Pizza because

we wanted something with name recognition, quality ingredients, and an offering that didn’t require a lot of labor. As a plus, Hunt Brothers has awesome pizza that not only we love, but our customers also love,” said Karen McGregor, operations director. For Max Arnold & Sons, efficiency is the No. 1 benefit of having a branded foodservice partnership. “Hunt Brothers Pizza operates as a true partner, immediately diving in to set everything up for us, provide training, and ensure we were ready to hit the ground running once implementing the program,” McGregor recalled. “If we have turnover in the store and need extra training, they are always ready to support us, which has been really wonderful.” Hunt Brothers was founded with a mission to provide customized, ongoing support to its c-store partners, and is well-known for its success in providing food options for rural, underserved communities. Hunt Brothers aims to work hand-in-hand with its partners to ensure they feel supported and can be successful. “All of this helps c-stores maintain high profit margins, providing the best service with a fully stocked Pizza Shoppe to serve consumers every day. When stores

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FOODSERVICE

partner with Hunt Brothers Pizza, they become a part of a network of over 8,000 locations,” relayed Dee Cleveland, director of marketing for Hunt Brothers. “With that comes the purchasing power, brand recognition and trust that only a branded program can provide.” Greg West, senior vice president of marketing and food innovations for Genuine Broaster Chicken, echoes this sentiment. He says partnering with a branded foodservice program offers retailers a promise and awareness — both of which drive sales. The ultimate goal of Beloit, Wis.-based Genuine Broaster is to provide the highest quality fried chicken in the marketplace. “Genuine Broaster Chicken is a trademark brand that requires use of specified pressure fryers, select coatings and marinades, and exclusive proprietary recipes which deliver great restaurant-quality fried chicken,” West said. “Trademark food programs offer no franchise fees and no royalties, but still have the ‘restaurant in a box’ simplicity.” Genuine Broaster also does not charge marketing fees. The c-store operator controls its marketing plan, including how much they want to spend and where they want to spend it. Simplicity is also a focal point for Brockton, Mass.-based UNO Foods, which partners with c-store operators to offer restaurant-quality product. Mike Murnane, president and chief revenue officer of

UNO Foods, says its branded foodservice program is functional and easy for c-store operators, with products that are all fully topped or stuffed and par baked to allow for less labor and easier preparation and cooking. “We also offer a no-fee license program called UNO Express, which features turnkey merchandising to display UNO branded pizzas and calzones in a limited space or in bigger space to fit the needs of a customer’s operation,” Murnane noted.

Navigating the Changing Trends While c-store traffic may have returned to near pre-COVID levels, that doesn’t mean nothing has changed regarding convenience foodservice programs since the pandemic started. For example, the dayparts when customers visit c-stores have been altered — perhaps for the long-term. Many c-store transactions have shifted from the breakfast and morning snack dayparts to the lunch period, according to Genuine Broaster’s West, who noted that basic fried chicken favorites such as bone-in chicken, tenders, popcorn chicken and sandwiches continue to be strong menu items. “Chicken is comfort food, which has carried its popularity through the COVID period,” he said. Along with the daypart shifts, consumers have come to love the convenience of delivery, curbside pickup, and digital ordering. These options will continue to be important in the foodservice space, predicts West. “Independent operators are usually the last to jump on technology trends, but we see this as being an important step for them to capture their share of the marketplace,” he advised. “Larger and mid-sized chains are already thriving with the online platforms, loyalty platforms, and delivery partnerships. This is absolutely here to stay.” To compete in the “convenience” space, curbside, self-checkout and digital are becoming a price of entry, according to UNO

The ultimate goal of Genuine Broaster Chicken is to provide the highest quality fried chicken in the marketplace.

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Foods’ Murnane. “C-stores will continue to offer the conveniences of variety, cold and hot drinks, snacks and foodservice, but the definition of convenience continues to be dynamic and c-store operators need to be at the forefront of convenience technology,” he stated. Hunt Brothers has seen its c-store partners find success with carryout pizza orders, especially in areas where they are the main food destination. At Max Arnold & Sons’ stores, people can call ahead to order their pizza, come by to get fuel, and then pick up their dinner to take home. The retailer also fulfills large orders from nearby schools, which call ahead and order upwards of 20 pizzas at a time, McGregor noted.

Marketing Support Above all else, c-store operators want to partner with a branded foodservice program that can either turn their store into a destination or enhance their existing offer. Marketing programs can go a long way toward achieving this, especially when they incorporate combo promotions and limited-time offers (LTOs). Max Arnold & Sons has utilized LTOs to its advantage, McGregor pointed out. Hunt Brothers provides the signage for LTOs and other marketing materials, which streamlines the retailer’s internal processes. Hunt Brothers Pizza is well-known for providing food options in rural, underserved communities.

“When we were short-handed during COVID, they were one of the best partners that we could have had during an uncertain time,” said McGregor. “When the pandemic hit, we started doing more carryout pizzas and Hunt Brothers Pizza was there with us every step of the way.” In fact, the Hunt Brothers Buffalo Chicken Pizza LTO is such a good seller that McGregor wishes it would become an everyday offering. “That has been a really popular option for us, along with Chicken Bacon Ranch,” she relayed. “We also see a demand for breakfast pizzas as well. Our customers have consistently expressed excitement around LTOs.” Hunt Brothers’ marketing support also includes a partnership with NASCAR, which provides national advertising and increased brand awareness for its c-store partners, Cleveland said. “As an added benefit, our pizza finder app helps to drive traffic by allowing consumers to easily locate the closest location offering Hunt Brothers Pizza,” added Cleveland. When it comes to providing value to consumers, which is increasingly important in today’s inflationary times, West recommends c-store operators take a look at the menu pricing trends in their area. “To combat inflation and supply chain challenges, many quick-service restaurants (QSRs) are implementing big increases. Are [c-stores] value-priced and positioned to be able to capture the blue-collar crowd looking for their $5 to $7 lunch that is now $10 to $12 or more at their local drive-thru?”

The Future of Foodservice Programs The widespread labor shortage is not going away any time soon, which is likely to have an impact on branded foodservice program logistics. As such, West foresees more ordering kiosks and simplified menus. Genuine Broaster has already implemented technological enhancements to address some concerns, such as SmartTouch touchscreen controller technology being built into its ventless fryers in an effort to significantly reduce training time. Many partner locations also became early adopters of its automated E-Series pressure fryers, which feature auto oil filtering to extend oil life, according to West. Genuine Broaster also expects larger-format convenience stores to become the norm, with self-checkout and drive-thru being more commonplace in the coming years. “Ultimately, there may be a blending of QSR concepts and c-store food program concepts,” West asserted. Hunt Brothers foresees the shift at c-stores toward grab-and-go food continuing. “With the pandemic, many consumers leaned toward quick and easy food items across almost all sectors,” Cleveland noted. No matter what’s to come, branded foodservice programs will evolve as needed to support their c-store partners and enable their success, summed up UNO Foods’ Murnane. “Our focus is to provide the many benefits of our brand in a manner that fits the needs of the convenience channel,” he concluded. “This includes being part of digital marketing programs and loyalty programs. Our constant will be that our offering will always feature our restaurant quality.” CSN J UNE

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FEATURE

IS THE FUTURE OF THE FORECOURT ELECTRIC? The adoption of electric vehicles and hybrids is seeing charging stations make their way to the c-store forecourt, and this trend is likely to continue By Tammy Mastroberte

and premium gasoline are in no danger of going extinct any time soon, the convenience store forecourt has been undergoing changes that will continue to ramp up over the next 10 years and beyond.

WHILE REGULAR

Today, in addition to gasoline, consumers can find a variety of alternative fuels, including biodiesel; renewable diesel; alternative fuels that use ethanol such as E15, E20 and E30; and E85, which can be used in flex-fuel vehicles. And in the current state of high gas prices, ethanol blends are welcome because their cost is less than traditional gasoline. However, looking toward the future and what the c-store forecourt will look like in the years ahead, a likely disrupter will be the addition of electric vehicle (EV) charging stations — something c-stores need to be planning for today, according to John Gartner, senior director of transparency and insights at the Center for Sustainable Energy. “There is a big shift happening, and a bill that passed offering $7.5 billion of funding to create charging infrastructures,” Gartner told Convenience Store News. “C-stores and other retailers can apply for a portion of those funds from the federal five-year program and get 80

percent of the upfront installation costs covered.” All states will get an allocation of the funds. C-store operators can find out more from their state’s department of transportation. But it’s important to note the program is only five years long, so it’s best to take advantage of this funding now while it’s still available. “Even if you will be a little ahead of the adoption curve, it’s the choice of getting 80 percent covered or waiting and not having that available,” Gartner cautioned. Many automakers have announced plans to add electric vehicles to their lineups over the next 10 years, including Honda, BMW, Ford, General Motors, Hyundai, Jaguar, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru, Toyota, Volkswagen and Volvo. Some states, such as California, Florida, Texas, Washington, New York and New Jersey, are already seeing a portion of the public registering electric vehicles. In fact, interest in EVs tripled in the last three years, according to Ipsos, a global market research company. “Interest is at about 36 percent and in 2018, it was only 13 percent,” noted Christopher Koetting, vice president of channel performance at Ipsos. The proliferation of alternative fuels has also increased

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over the past couple of years. In preparation for the future, c-stores should be ready for changes in all areas pertaining to the forecourt — and anything else that might emerge down the road. “We have certainly seen the demand for EVs increase, along with the demand for other alternative fueling types,” said James Chiu, vice president of strategy and execution at Pilot Co. “Whether it will be electricity, hydrogen, natural gas or some other fuel, these are the questions we see across our industry, and we are always looking at how we can better serve our guest if and when these options become readily available.”

Preparing for Electric Major oil companies are acquiring EV charging companies, such as Shell’s purchase of Greenlots in 2019, and BP’s recent purchase of fleet charging provider AMLY Power in December 2021. Shell’s website states that the company has set a target to have more than 500,000 charge points by 2025. C-store chains should be following this lead — especially those with locations in the areas where EV adoption is concentrated currently. Early adopters in the c-store industry include Wawa Inc., which began offering EV chargers in 2017 and as of May 2021, had 50 chargers installed at various locations; and Pilot, which recently unveiled a $1 billion initiative to overhaul its travel centers over the next three years that will include fueling alternatives such as EV charging stations and the development of a strategy to support low- and zero-emission vehicles. “Pilot Co. is a fuel-agnostic organization dedicated to supplying our customers and guests with the fuels they need now, and in the future,” said Chui. “Today,

The Most Popular States for Electric Vehicles According to the U.S. Department of Energy’s Alternative Fuels Data Center, there are six states in the United States that currently dominate electric vehicle registrations, with California far outpacing the others. The below figures are as of June 2021. STATE

# OF EVS % OF TOTAL REGISTERED VEHICLES

California Florida Texas Washington New York New Jersey

425,300 58,160 52,190 50,520 32,590 30,420

42% 5.7% 5.1% 5.0% 3.2% 3.0%

we are one of the top suppliers of biodiesel and renewable diesel in North America, and currently have six locations offering EV charging across Texas, Arizona and Washington that house 50 Tesla chargers with a utilization rate of between 1 percent and 5 percent. We are planning to expand that over the next few years as part of our New Horizons initiative.” C-store chains should evaluate their locations and the demand for EVs in the areas they serve, so they can understand how quickly their markets are anticipated to transition. This can help retailers determine when the right time to invest may be, said Gartner, noting again that the government funds will only be available for a limited time. “It can be a lengthy process with permits, contractors and electricity upgrades, and the federal program is for five years, so c-stores need to see what opportunities they have to take advantage of that funding,” he emphasized. One of the biggest concerns for c-stores is not only the capital expense of installing the charging stations — which is why many are adding them to new builds — but also the cost of providing the electricity to the charging stations. “It could increase a c-store’s electricity bill and cause them to incur demand charges, where penalties for exceeding demand carry over for months afterward, which would wipe out any profit they could make from selling it,” said Gartner. “There is still a lot of work to be done with regulators so that electricity can be more cost-effective to provide.” DC fast charging stations are what experts recommend because in 20 to 30 minutes, a car can reach an 80 percent charge, vs. a Level 2 AC charger that can take up to 8 hours. EV customers charging at convenience store locations will have this time to spend on the lot and in the store spending money on goods and services. “C-stores need to think about providing a haven for consumers beyond the forecourt, almost as a destination,” said Ipsos’ Koetting. “They will have a captive audience for a longer period of time, and should be looking at ways to differentiate so they can drive EV consumers into the store.” While many gas customers spend only minutes at the forecourt and may run into the store for the restroom, a beverage or a snack, EV charging customers will have more time to shop and eat at the location. C-stores should consider providing more indoor and outdoor seating, foodservice and Wi-Fi that extends to the forecourt to keep customers occupied, according to Gartner. “You will have more time with consumers and you want to keep them happy, entertained and satisfied during

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FEATURE

the forecourt to make it easier to get in and out, especially as these new features and options are added.”

Barriers to EV Adoption While some consumers have gladly made the jump to electric — whether hybrid or fully battery operated — there are still some barriers slowing down the adoption of EVs throughout the United States: price, confusion, and the availability of charging stations. “The vast majority of the public doesn’t understand EV and there continues to be misinformation about it focusing on or exaggerating some of the challenges,” said Gartner. “Part of it is also car manufacturers have not been as enthusiastic about promoting electric vehicles because they make less of a margin on them than conventional [vehicles].”

“C-stores need to see this as an opportunity and not a threat.” that time,” he said. “Many of the EV charging stations will also be offering mixed media that is found at the pump, so that will provide another opportunity as well.”

Right now, the majority of EV owners (48 percent) are younger millennials between the ages of 18 to 34, according to Ipsos’ Mobility Navigator syndicated study. Additionally, 79 percent of these EV owners have a hybrid model. The study also asks what the top barriers are for both current EV drivers and potential drivers. Uncertainty about finding charging stations tops the list for both, followed by the premium price of the vehicles themselves.

And while the margin for electricity will be less than selling gasoline, the highest profits remain inside the c-store. With EV customers having more time to shop — two to three times longer than before as they wait for their vehicles to charge — this presents an opportunity for convenience store operators to grow their bottom line, Gartner pointed out.

“There is a premium on EVs right now, and many dealerships have a separate premium fee addition for any new vehicle purchase,” said Koetting. “There is a reality and perception about battery replacement as well, and while it’s true it may be costly, most brands recognize that fact and are putting extended warranties in place to reassure consumers.”

“C-stores need to see this as an opportunity and not a threat,” he said.

As far as the uncertainty around charging stations, this falls into the category of “range anxiety,” a fear among consumers that they won’t be able to accomplish their normal driving habits on a single EV charge. However, Ipsos’ studies show that a range below the 300-mile mark would prove sufficient for three out of five EV consumers.

— John Gartner, Center for Sustainable Energy

Other areas of the forecourt need to be considered as well, especially lighting. While exterior lighting has always been important, it will become even more critical as customers are spending more time on the lot. This includes lighting the forecourt itself, as well as marking a clear pathway into and out of the store. Koetting noted that companies like LSI are already offering lighting technologies that “paint” the store with light and illuminate the pathway from the fuel canopy to the store. “With the EV environment, there will be increased emphasis on those new lighting technologies and the safe transit solution they provide,” he added. At Pilot, the travel center operator has already made changes following the COVID-19 pandemic to meet customers’ changing expectations at the forecourt, including extra cleanliness and a more welcoming environment that includes cleaner parking lots and better, brighter lighting. “As we move forward to adopt more alternative fuels, the forecourt will take a much different shape as it begins to house these emerging technologies,” Chiu explained. “It will be important to streamline

“Our studies show the real driver of EV consideration is familiarity, such as charging stations, charging speed and range requirements. EV familiarity more than doubles consideration, so it behooves providers and those connected to EV, such as c-stores, to help promote understanding of the offerings and how it can work at ‘refueling’ stations,” Koetting said. The Center for Sustainable Energy launched a dealer certification program to provide training videos and education to help dealers grow more comfortable and enthusiastic about EVs in hopes that it will move the market further along, noted Gartner. “C-stores and fuel operators can provide a unique value to EV consumers by offering faster charging, charger availability, and the opportunity to complete other shopping tasks while charging. This can push c-stores to be the refueling centers these customers need,” Koetting concluded. CSN

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SPECIAL SERIES ON SPECIAL SERIESENGAGEMENT ON NEXT-GEN LOYALTY FRICTIONLESS

Making Third-Party Delivery Work for C-stores The channel must consider how to respond to burgeoning customer demand for delivery By Lisa Terry CONSUMERS’ GROWING appetites for delivery show no sign of slowing down, particularly among younger demographics. According to the National Restaurant Association, 53 percent of adults say purchasing takeout or delivery food is essential to the way they live. They’re bringing the expectations they formed while ordering from restaurants to prepared-food ordering from grocery and convenience stores — and increasingly, non-food items as well.

The marketplace is responding. 7-Eleven Inc. recently added a subscription option to the home delivery program it launched in 2018. BP announced a partnership with Uber Eats to offer delivery service via more than 3,000 locations globally by 2025. Third-party services from Grubhub to DoorDash to Postmates not only offer delivery from retail brands including 7-Eleven, Walgreens, Wawa, QuickChek and The Ice Cream Shop, but also compete with their own convenience item delivery services. DoorDash’s DoubleDash even allows customers to piggyback convenience store runs on top of their restaurant orders. Partnering with a third party for delivery enables a c-store to satisfy customer expectations without adding the labor costs, liability and extra insurance associated with employing drivers. Many delivery companies argue that their platforms also expose the c-store brand to a larger audience and create a new revenue stream. But that doesn’t mean third-party delivery is a slam dunk for every c-store. At the top of the list of challenges is identifying ways to make third-party delivery profitable. C-stores also struggle to operationalize order fulfillment in their locations, integrate delivery services seamlessly into their backend systems, and ensure a good brand experience when part of the service is out of their control. Many c-stores are finding their engagement with third-party delivery providers is still a work in progress. “I think you’d have a hard time finding one [c-store retailer] that says [third-party delivery is] working well and doesn’t need improvement,” says Perry Kramer, managing partner of Retail Consulting Partners, based in Boston.

OVERCOMING DELIVERY SERVICE CHALLENGES Despite the many challenges, c-store brands are finding a path forward by learning from restaurants’ experiences and leveraging emerging best practices and technologies to meet the growing customer expectations for a delivery option. Making Delivery Profitable Many c-stores are finding that the costs and business practices of third-party delivery firms, which charge a commission as well as customer fees, make it tough to drive a profit. Sylvania, Ohio-based Stop and Go Stores (S&G) has faced challenges “making the math work where the margin made offsets the expense of the third party as well as internal labor needed to fulfill the orders,” notes Neal Frandsen, vice president of marketing. However, he adds: “We are aware that if we want to remain relevant in the convenience store arena, we need to have an active food program and a delivery service to support that program.” Stop and Go is currently in talks with a no-commission, flat-fee delivery service broker, Lula, to meet this demand, with a possible pilot in the works. Other strategies to minimize costs and drive profit include limiting orders to busier stores and those with a foodservice offering, where the volume and margin may offset the additional costs. Some restaurants have tried raising prices for delivery items, although this has been met with customer backlash. Experts urge c-stores to own as much of the ordering process as possible and then dispatch the delivery component to a third party, rather than relying exclusively on orders created in third-party apps such as those offered by Google or delivery companies. This not only gives the c-store more control, but also allows them to take a hybrid approach to delivery, using in-house drivers during the busiest hours and cross-training them on other tasks for slower times. “You’ve got to do first-party ordering, where you own

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Sponsored by

A Bright Future for C-store Brands That Embrace Change permanently changed how people order food. That’s the key finding of the 2022 Paytronix Order & Delivery Report. The process of technological change that had been underway for a long time received a huge boost when the country was sent into lockdown in 2020. Now that we’re By Andrew Robbins, Paytronix emerging from what we hope is the worst of the pandemic, we’re finding that consumers have embraced the digital revolution by using new technology to continue their connection with their favorite brands. THE PANDEMIC

Paytronix data shows that a third of all food orders in March 2022 came in digitally, compared with just 12 percent pre-pandemic. What’s more, we’re seeing takeout emerge as preferred to delivery. Still, third-party delivery services play a key role in the overall digital ecosystem, and savvy brands have embraced these technologies, along with other tools that enable them to simplify operations. A report from Paytronix and PYMNTS found that since the start of the pandemic, 42 percent of consumers have used at least one delivery aggregator. This is true even as consumers know they pay more to use that service. There is evidence that this trend might be changing, though, as consumers opt to order directly when possible or, as seen in our data, opt to pick up rather than get food delivered. This new trend becomes evident when consumers are asked about what drives their choice of an eatery. Convenience is a major factor, influencing 47 percent of purchases, with 19 percent of customers saying convenience is the most important driver of choice. Generation Z consumers are the most likely cohort to cite convenience as a motivator: 24 percent say it is the most important fac-

tor when choosing a place to eat. Similarly, 46.5 percent rank “convenient to pick up” as either “most important” or “important” when it comes to making eatery choices. Increased digital orders have also opened the door for more guest reviews. Customers want to share their feedback and, in turn, feel they are heard. This provides brands with a huge opportunity to influence future customer visits and lifetime value by proactively responding. The proliferation and growth of digital ordering means operators need more information on the front line. So often, delivery can go wrong, and this error is compounded by the difficulty of correcting mistakes off-premises. When something does happen, getting the information quickly and directly to the manager so that he or she can intervene on behalf of the guest is the difference between winning a guest back and increasing the customer lifetime value (CLV) or losing them forever. Paytronix data shows that customers leaving a 1-star rating are as likely to return as those leaving a 2.4-star rating. In fact, 13 percent of customers who left a 1-star review can be attracted back with a coupon, and that coupon results in a 4-times increase in CLV. Also, negative comments can lurk in 4-star ratings, and artificial intelligence (AI) can help surface negative sentiment at the right time to take corrective action. As companies look to the future, there are exciting opportunities to explore programs that drive sales by learning and adapting to customer behavior. This is where artificial intelligence can play a key role. AI can drive individual customer action by providing superior customer experience, which translates into increasing top-line revenue for restaurants and c-stores. Specifically, AI can recommend menu items tailored to individual customers. By understanding behavior segments within online ordering audiences, technology can quickly motivate subsequent orders to increase order size. For example, customers who order delivery are incredibly loyal, with 31 percent of delivery orders coming from repeat customers. They tip better and more often, too. Offers targeted at this group may not need to cost as much compared with other groups. The future of digital ordering, based on AI, will enable a better customer experience, and that’s a bright future for c-store brands that embrace the technological change. CSN

Andrew Robbins is CEO and co-founder of Paytronix Systems Inc. J UNE

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TECHNOLOGY

Pumped-Up Connections The future of the fueling experience can be spelled m-o-b-i-l-e By Melissa Kress MUCH OF THE conversation about forecourt technology has centered on outdoor EMV compliance, and rightfully so. Now, with one year passed since the compliance deadline, some retailers are still working to get up to speed, but the conversation has also shifted to other innovations.

If retailers are investing in upgraded pumps, why not look for new solutions to bring along? One of the more compelling topics on the forecourt is mobile payments, according to Brad Bossert, director of sales and marketing at Bulloch

Technologies, an Ontario, Canada-based provider of petroleum point-of-sale (POS) systems. While there are still many customers happy to use credit cards to pay for fuel, Bossert believes the industry will see a rising number of mobile transactions at the pump.

Making the Case for Mobile Mobile is something that P97 Networks LLC, one of Bullock Technologies’ partners, knows well. Houston-based P97 provides secure, cloud-based mobile commerce, in-vehicle payments and digital marketing solutions to the convenience and fuel retailing industry. P97 CEO Don Frieden reports that the company’s mobile transactions have grown 6.8 percent since January 2020. “Consumers are interested in using mobile devices to find

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locations and transact at those locations,” he said during a recent webinar hosted by member-driven industry technology organization Conexxus. Monthly mobile transactions per user are also up. Compared to card companies’ data — which reports 1.6 to 1.8 transactions per month for the same fuel brand — mobile transactions come in around 3 transactions per month, according to Frieden. “These will be your most loyal customers once you get them converted to a mobile app,” he said. In 2021, NACS reported that the top 10 percent of convenience channel retailers saw fuel margins of 40.36 cents per gallon, which was 26.9 percent higher than the bottom 10 percent of retailers even though top performers priced fuel 8 cents per gallon higher. This suggests top performers are “better able to target discounts integrated with payments,” Frieden explained, noting 69.5 percent of fuel sold on the P97 mobile platform in 2021 was discounted. Gallons purchased per fuel transaction on mobile come in at almost 12 gallons.

Advances in Mobile Mobile is driving retail innovation across the industry. “When you start thinking about mobile payments, it is more than just thinking about replacing card swipes, but actually allowing consumers with smartphones or connected cars to make payments for fuel or EV charging or even merchandise,” Frieden said. Mobile payments are also moving toward voice-activated payments in virtual systems, he noted, and payments with super apps like Venmo are becoming popular as well. Additionally, mobile platforms can help convenience retailers with the energy transition by replacing fuel-focused experiences with electric vehicle (EV) charging and hydrogen fueling experiences through mobile apps and connected cars, leveraging a technologydriven, customer-focused approach, and putting convenience in the palm of the customer’s hand.

EV charging is a new category that P97 is focused on. This comprises payment; loyalty rewards and targeted offers not only for EV drivers, but also for fleet platforms as more fleets move toward EV; and billing, subscription and roaming services.

Media at the Pump Moving forward, Bulloch Technologies’ Bossert also expects to see big things at the pump in the form of bigger screens that can bring advertising and promotions to fuel customers. “Everyone is working to get advertising content there,” he said of media platforms on the forecourt. “It is all geared at enticing the customers into the stores to buy that can of pop.” Another service that could be on the horizon for the forecourt is lottery at the pump, although Bossert points out “this comes with its own uniqueness.” For example, customers would receive the lottery ticket via email or text and not a printed ticket. Pump-screen ordering is another possibility. The ability to integrate this interactive process depends on what a retailer’s POS system does. Pump-screen ordering also has to work on a touchscreen in all regions and all weather, from Alaska to Florida. “The capability is already there, but I see more [forecourt technology] around mobile and prompting the customers to go inside the store,” Bossert predicted. Bethlehem, Pa.-based Square One Markets Inc., which operates seven c-stores in northeast Pennsylvania, has been an early adopter of pushing content out to the forecourt. Square One Markets President and CEO Lisa Dell’Alba said she’s always been bothered by the fact that there is a significant portion of the retailer’s customers that the employees never see. “So many folks come to the forecourt, they fill up their car, they interact with the dispenser, and then they leave,” she said during a recent fireside chat with Conexxus Executive Director Gray Taylor. “That’s the only representation of our organization, our business and the way we go to market.” Just like inside the store, controlling what those customers are seeing and how they interact with the brand is key for small businesses, she relayed. “It’s really important as a small business to be able to say this is what sets us apart for those customers that are just not coming in,” she said, adding that Square One Markets has been fortunate to work with a great partner to push out content. The move is bringing customers in, even if they sometimes come in for free offers. “That’s OK,” Dell’Alba said. “That’s probably the most active campaign we have on the dispenser is offering a free coffee. It really just gives us an opportunity to interact.”

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Struggling with staff shortage? Automate cash at the Self-Checkout Customers don’t expect to wait in a long checkout line; it defeats the purpose of “convenience.” Up to 50% of convenience store transactions are paid in cash. Don’t leave it out of the fast lane. CPI is a provider of payment solutions with 30 million devices in operation, processing 40 million cash payments and powering 4 billion transactions each week to keep your stores productive and give you piece of mind.

CranePl.com

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How Cash at the sco can ease labor issues It’s 2022--Retailers have recognized the value of selfcheckout technology and the benefits it will bring to their stores including easing labor shortage problems, improving the customer experience, and, of course, increasing the bottom line. Now you need to consider how to deploy your self-checkout to best suit the needs of your stores and your customers; the big question is— do you automate cash, or go completely cashless?

lead customers to perceive unfairness—why should they wait in line while the card paying customer can breeze right through? It’s not worth the risk alienating such a large portion of your customers. Card-only self-checkouts will still require a cashier to handle all cash payments, increasing the likelihood that lines will continue to be long at rush hour, and risk customers walking out without purchasing. 41% of customers will abandon their purchase if they see a long line, and one bad experience can sour customers on your entire business. Almost half of consumers avoid a specific store if they have to wait longer than 5 minutes. No one wants to lose business due to customer dissatisfaction, and these lines can be effectively eliminated by deploying cash automation with self-checkout. 41% of customers will abandon their purchase if they see a long line

You may be leaning toward cashless—it’s less costly upfront, and card payments seem more like “the future.” Let’s examine that assumption—can you get the full ROI you expect from your self-checkout without adding cash? First consider from the perspective of the speed of service; self-checkout will move your customers through the line faster and eliminate long lines at peak times of day. If you’ve only automated cashless payments you haven’t solved the complete problem, and will not be able to repurpose cashiers to take on additional store related tasks, like cleaning, stocking shelves, etc. Stores that struggle with staff shortages will find relief by allowing their customers to checkout without their assistance, ensuring only one cashier is required to ring up ageverified products. 47% of all purchase values under $25 are paid in cash Next, think about your customer’s experience. For the average purchase in convenience stores, consumers overwhelmingly choose cash; 47% of all purchase values under $25 are paid in cash. The percentage of cash usage in your stores may be even higher given that the average c-store transaction is between $3.75-9.00; recent studies report around 40-50% of purchases are made in cash. In addition to preferences, the Federal Reserve estimates 20-28% of the population is currently “un-banked,” or “under-banked,” and do not have access to card payments. Cashless only self-checkouts could

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Lastly, cashless processing isn’t always as cheap as it seems to be. There’s a good chance cash payments cost less as a percentage of your revenue than cashless. Driving customers to cashless may actually increase costs and negatively impact profit margins. In order to fully reap the benefits of your self-checkout deployment you need to include both cash and cashless payments. Cash automation makes it a well-rounded solution and delivers a superior ROI for your business.

Experience seamless self-checkout now. Visit Learn.cranepi.com/C-StoreSCO

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TECHNOLOGY

Gaining Reach & Scale Detroit-based GSTV entered the retail media space back in 2005 when it launched as Gas Station TV. Twelve years later, it merged with Verifone Pump Media to form GSTV, a singular national video network. Today, the data-driven network reaches one in three American adults monthly with full sight, sound and motion video during the fuel experience. In March, the company upped its game with the debut of AMPLIFY. “For a lot of [CPG] brands, convenience is a very popular retail channel for driving sales growth and as they look at their topline sales growth initiatives, convenience is a great way to do that. Convenience store retailers are also looking to drive customers into the store,” explained Kristal Walton, vice president, CPG, who is leading the launch of GSTV AMPLIFY. “AMPLIFY is an evolution of that — ways we can partner with brands to support them and drive people into the store to

“When you start thinking about mobile payments, it is more than just thinking about replacing card swipes, but actually allowing consumers with smartphones or connected cars to make payments for fuel or EV charging or even merchandise.” — Don Frieden, P97 Networks LLC either buy something incremental to what they already planned to buy or to get them to buy something when they weren’t planning on going into the store,” she added. GSTV’s Dan Trotzer, executive vice president, industry, pointed out that the company’s content strategy has changed over time, migrating from the standard news/ weather/sports to a more web and digitally based quick-bite entertainment platform.

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TECHNOLOGY

“So many folks come to the forecourt, they fill up their car, they interact with the dispenser, and then they leave. That’s the only representation of our organization, our business and the way we go to market. … It’s really important as a small business to be able to say this is what sets us apart for those customers that are just not coming in.” — Lisa Dell’Alba, Square One Markets Inc.

“We’ve always been doing research to understand what is working, what is engaging consumers, and what is of value to both the retailer and our advertisers,” Trotzer said. “Part of what AMPLIFY is about is doubling down on making sure GSTV is providing value to the [CPG] brand advertisers, which are directly aligned with the interest of our retailers.” GSTV has more than 28,000 active sites today, as well as roughly 44,000 under contract and in the process of deploying the hardware and the solution. GSTV manages the programing from end to end and works with the individual retailer to make sure there is content specific to that location, in addition to regional and national brand content from the CPGs. The content can be segmented by daypart or by season. “The smaller operator does not necessarily have a marketing and merchandising staff; they are wearing all the hats. Our retailer success team is charged with being, to the extent they can, that resource for the retailer. They follow trends and trade articles for things that are regional, popular, and make recommendations for the types of

things we can put on-screen,” Trotzer noted. Seasonal messaging is important and lets consumers know the content is fresh. “If you play the same thing over and over, particularly in an experience that people are going to have three times a month, you don’t want it to be the same thing month over month. It loses its impact. That freshness and updating of contact, and doing it in a scalable way, is key for the retailer,” he said. Media at the pump works well for CPG brands that already have a presence in c-stores, and those looking to break into the channel. On the retailer side, just as difficult as it is for a brand to reach the independent convenience store owner, it is equally challenging for an independent retailer to get the attention of national CPG brands to get their brand message to their site. “It’s a nice two-way street,” said Trotzer. “They benefit from being a part of something bigger, and the brands now have a single point of contact to be able to reach that very valuable convenience shopper.” The GSTV executive also sees mobile as the future of media at the pump. “There is more flexibility on the mobile side, and we are interested in helping retailers take advantage of that. In the same way we have aggregated all these touchpoints on screens at the forecourt, we can also aggregate audiences through mobile and bring that to our advertisers as well,” he said. “It is evolving and going in a lot of exciting places beyond bringing that fuel customer into the store.” CSN

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WHAT’S NEXT

Trends in DEI&B A conversation with NextUp’s VP of Learning Karen Jones KAREN JONES,

vice president of learning and partner solutions, came to NextUp with 25 years of experience and endless testimonials to her insight and grace. She was a DEI&B (diversity, equity, inclusion and belonging) expert before “diversity” was a buzzword, and before many companies cared what the world thought about how many women and people of color sat on their boards.

By Angelina Bice, Content Strategy Specialist, NextUp

Jones now leads NextUp’s learning and development team, and personally leads dozens of DEI&B workshops every year with companies all over the country and beyond.

In this wide-ranging interview, we discuss what Jones has seen in searingly honest conversations inside some of the largest corporations in the world, the work we all still must do to reach equity, and what’s on the horizon in the DEI&B conversation. This article is excerpted from the full interview, which can be read at nextupisnow.org/blog. Bice: What’s in the air right now in DEI&B? What’s bubbling up in the DEI&B education community and the wider conversation about women going back to work?

Convenience Store News is pleased to continue this series of educational columns by NextUp, coinciding with the annual CSNews Top Women in Convenience awards given out each fall. Ninety-one female managers, executives and directors who work in the convenience store industry will be honored in our 2022 program. In addition to being a presentation sponsor for the Top Women in Convenience program, NextUp and CSNews have partnered to develop this series of columns directed at helping corporate leaders drive more inclusive company cultures.

THE 2022 CONVENIENCE STORE NEWS TOP WOMEN IN CONVENIENCE PROGRAM IS SPONSORED BY: Founding & Presenting Sponsor:

Platinum Sponsors:

Gold Sponsors:

Silver Sponsors:

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WHAT’S NEXT

Jones: It’s how we re-engage women, or what the engagement of women in the workforce is going to look like moving forward. And I have to say, the reality is that we’re never going to fully go back to the way we were before COVID-19 hit. It caused people to self-reflect about what would be meaningful to them when it comes to work. It caused people to become intolerant to mistreatment. We must ensure that we do not try to bring people back to the traditional forms of work, which clearly weren’t serving women. And for women of color, on top of the intolerance for the style of work, there is intolerance to not go back to how we were treated prior to the pandemic. The workplaces that are going to become more appealing are those that do create a sense of belonging and are values-based. As we talk about our approach and what we can do for our partner companies, we can help through leadership development, as well as through understanding more about inclusion and getting those values in place. Building a principle-centered workplace creates high engagement. Bice: Anything else that just jumps to mind that’s a growing trend? Jones: I can tell you, the biggest thing from talking to other DEI [professionals] and our practitioners is what I see as a healthy restlessness and a healthy impatience. So, the glacial pace of change must accelerate. We have to have equity and inclusion. We’re hearing from employees that it’s time to make equity happen, or that employees have options outside of the corporate sector. They’re more willing than ever to just go start their own company or do something else if they can’t be fulfilled inside their organization. My prediction is that those organizations that don’t evolve over time to meet their employees’ needs and deliver equity will see themselves with less and less employee engagement — and failure, honestly.

“We must ensure that we do not try to bring people back to the traditional forms of work, which clearly weren’t serving women.” — KAREN JONES, NEXTUP Bice: On the heels of the many employee walkouts that have happened over the last couple of years, as well as the “Great Resignation,” it seems people are really losing patience with corporate culture and are less tolerant than ever for behavior they feel violates their values. Do you think there’s a likelihood that’s going to get more intense? Jones: I think it’s highly probable, and I believe we’ll see it crescendo over the course of the next five years. For those people who have been working from home for the last two years and are being summoned back to their workplace for five days in a row, they’re counting all their chips and trying to figure out their next move. We’re going to see waves of people departing the workplace. There is no real excuse, for example, for not letting employees work remotely anymore. It was hypothesized prior to COVID that people could work offsite and have agile work schedules, but now it’s been proven. Productivity increased; it didn’t decrease. So, what is the workplace’s excuse for having to bring everybody back? There isn’t one. The old way of just working all the time, living to work, that’s over. Who wants to keel over dead in front of their desk? It’s driving innovation to have people work offsite, to crowdsource — and I’m old. But I can’t wait to work for millennials and Gen Z. I feel like you all are leading the way to where we should be. It’s creating more opportunity for us and new ideas, and it’s creating a brighter future for everyone. CSN

Angelina Bice is NextUp’s copywriter and content strategy specialist. As the “voice of NextUp,” she has worked with the organization since 2020 and was a key part of the brand’s transformation in 2022. Her expertise is in brand voice development and transformation. Editor’s note: The opinions expressed in this column are the author’s and do not necessarily reflect the views of Convenience Store News.

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STORE SPOTLIGHT

Keeping Pace Street Corner is aggressively growing to meet the needs of today’s urban, digital communities By Renée M. Covino AT STREET CORNER,

there are no stop signs.

Ever evolving, the multiformat, franchiseeowned chain of 32 years — which is now in 19 U.S. states and one new international location (Panama City) — is most recently distinguishing itself with an urban-model format that features a contemporary store design, advanced technology, and unique and fresh foodservice. “We call ourselves the new generation of c-stores,” Street Corner CEO Vikram Dhillon told Convenience Store News. “We’re now focusing heavily on organic food, local product, and cobranding with local businesses.” A Street Corner urban flagship store will open this August in Tempe, Ariz., where the “first car-free neighborhood built from scratch” in the United States is underway. This neighborhood will feature Street

Corner’s largest store to date — 5,000 square feet vs. the chain’s previous maximum store size of 3,700 square feet. The demographics in this neighborhood will consist largely of retirees and empty nesters who don’t want to drive anymore, according to Dhillon, who will be the Tempe store’s owner/franchisee. Street Corner has never had company-owned stores, but Dhillon is building this store (his third franchised location) to practice what he preaches. “[Franchisees] will want to visit to see the perfect new model of our stores, and I’m going to do everything by the book,” the chief executive said. One of the highlights of this flagship store will be a fullservice, premium beverage program with a dedicated space like Starbucks, Dhillon relayed. “There will be somebody behind the counter making your beverage fresh,” he explained. At this location, Street Corner is cobranding with Rare

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STORE SPOTLIGHT

Earth Coffee, which falls in the 1 percent of coffee roasters that “air roast” their coffee. “It doesn’t have an aftertaste, and it’s a lot smoother,” he said. “I have consultants and I’m still learning about all of this, but it’s something outside of the box and we’re excited about it.”

Naan Traditional All new Street Corner stores feature the Topeka, Kan.-based chain’s new made-to-order food program. Using Indian naan bread as its platform, the proprietary menu consists of sandwiches, wraps, and flatbread pizza. Varieties include Buffalo Chicken, Spinach and Pesto, Beef Bulgogi, Margarita, and Chicken Chipotle. The new fare is cleverly marketed as “Naan Traditional,” and was created by a renowned chef and veteran food consultant who was hired to bring in more “exotic” offerings. The new prototype stores will also serve breakfast foods and gourmet salads, along with providing catering services. The goal, according to Dhillon, is to make every store a local destination for food and essentials. “People will go out of their way, or at least make a special trip, for food they like and see as a good value,” he said. As part of the urban format’s “more upscale market feel,” wine tastings and wine pairings will be a recommended store element, one that is already underway at a New York location, and will be part of the Tempe flagship store owned by Dhillon. “Because craft beer and wine will be a big focus, we will have local vendors come in and do the pairings, put the menu together for us, and set up tables on a monthly or weekly basis. It won’t be a mandatory part of the franchise program because at the end of the day, we want franchisees to control their business. But I’ll be doing them and recommending them as a way to increase sales,” he explained. Local flair is a big part of the gourmet and grocery items sold at Street Corner. Every store has a section of local products, signed as such and typically merchandised in a gondola. Some stores even create their own slogans for their local products section.

All new Street Corner stores feature the chain’s new made-to-order food program that uses Indian naan bread as its platform. The new fare is marketed as “Naan Traditional.”

Contemporary Tech Technology is also a part of the contemporary, sleek focus of newly opened Street Corner stores, which feature open ceilings, an “industrial contemporary” atmosphere, and murals and graphics that have a “city appeal.” Two checkout stands are found in-store: one full-service and one self-service. All systems are cloud-based — the back office, point-of-sale, ordering, inventory management, and daily task management for owners. “So basically, an owner can keep an eye on what employees are doing. Most want to be absentee and still run their business successfully,” said Dhillon.

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Street Corner now offers three store formats: Express Stores for shopping centers and campuses, Urban Markets for underserved metro communities, and Urban Market Fuel Stations.

With an eye to the future, Street Corner is testing a fully cashier-free “autonomy store” in the upscale San Diego seaside neighborhood of La Jolla. This is another one of Dhillon’s franchise stores, where he decided to experiment when the COVID19 pandemic hit. The store is in a high-rise office building that caters to about 6,000 employees, many of whom started working from home during the pandemic. As a way to survive, reduce the store’s payroll and try to stay afloat by attracting nearby hotel clientele, Dhillon installed artificial intelligence (AI) technology whereby the door is unlocked with a credit card and items can be dropped into a virtual shopping cart. “The goal was to have it accessible to the hotel area 24 hours a day,” he said, noting that this pilot is ongoing with the autonomy store evolving with more learnings.

Future Growth Street Corner has no intent of slowing

down. Agreements for 25 new locations have been signed and these stores are slated to open between now and next summer. The chain has noticed an entrepreneur resurgence since the pandemic has started to ease. During the height of COVID-19, Dhillon said “people got scared of taking risks. But now, not so much. They’re stepping outside of their normal shell and pleasantly surprising us, looking beyond opening stores in the U.S. They’re looking at underserved countries and cities.” Street Corner’s first international store in Panama City, Panama, opened at the end of April, and the retailer is receiving more international inquiries. “Our business model is flexible enough for this,” the CEO said. “We want to cater to local demographics, including internationally. We are not cookie-cutter like most franchisees. We look at local communities, what they need and what they’re missing.” This also includes stores with fuel — yet another evolution of the Street Corner brand. The chain opened its first location with gas in South Dakota last November. This particular location also includes a sports bar and casino. Drive-thrus are on the company’s radar as well. Where appropriate, typically at urban formats with gas, drive-thrus will be featured, according to Dhillon. CSN

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HOT PRODUCTS SPECIAL ADVERTISING SECTION

ATM’s

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HOT PRODUCTS SPECIAL ADVERTISING SECTION

Age Verifier

Promotional Services

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REACH OUT FOR THAT CUSTOM QUOTE FOR YOUR BUSINESS , FRANCHISE OR STORE www.everythingpromotionalproducts.com

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Beef Jerky

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Cigar/Cigarillos

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Sunglasses

POS/ Equipment

ADINDEX Wholesale Refrigeration Altria Group Distribution.................2

Liggett Vector Brands......................57

Anheuser-Busch LLC.........................37

LSI Industries Inc...............................79

BIC USA Inc.........................................9

Mars Wrigley Confectionery...........13

Buzzballz LLC.....................................17

Pabst Brewing Co..............................32–33

Calico Brands, Inc..............................16

Paytronix Systems Inc.......................70–73

Chevron Corporation........................19

Perfetti Van Melle USA Inc...............31

Crane Payment Innovations............76–77

Premier Manufacturing.....................22–23

Del Monte Fresh Produce N.A., Inc................................................21

Smokey Mountain Chew Inc............61

DMF Bait Company...........................59 E-Alternative Solutions....................27 Essentia Water....................................15 FIFCO USA..........................................51

Swedish Match North America.......25 Swisher International, Inc................5, 49 The Hershey Company.....................53

Forte Products....................................18

The Wonderful Company/ Fiji Water.............................................11

Freezing Point LLC Frazil...............1

22nd Century Group Inc...................108

GlaxoSmithKline Consumer Health Care..........................................7

Tyson Foods........................................55

Invenco.................................................29

8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631 Phone 773-992-4450 Fax 773-992-4455 www.ensembleiq.com

Sugar Foods Corp..............................39

ITG Brands...........................................40–41

Uno Foods...........................................63 Vita Coco Water.................................47 Universal Merchant Services...........Outsert

J&J Snack Foods Corp.....................45 Krispy Krunchy Chicken...................43

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INSIDE THE CONSUMER MIND

Product Proficiency Fair prices and in-stock supply matter most to c-store shoppers these days When choosing which retailers to shop at, nearly half of convenience store customers say the shopping experience at each retailer is important to them and a factor in their decision-making. These days, what a positive shopping experience means to them is, foremost, the price of products and the products they need being in stock — not surprising considering the supply chain and inflation difficulties that are currently challenging the retail industry. The 2022 Convenience Store News Realities of the Aisle Study, which surveyed 1,500-plus consumers who shop a c-store at least once a month, uncovered the following insights:

Among convenience store shoppers, the three leading descriptors of a positive shopping experience are reasonable prices, in-stock products, and a good variety of products.

“Convenience to me means that the products I need are in stock at low prices, so I do not have to go to more than one store to get all I need.”

Price of products 53% Products I need are in-stock 41% Variety of products offered 30% General convenience 28% Store cleanliness 26% Speed of shopping trip 16% Employee friendliness 15% Quality of prepared food 15% Loyalty program 14% Employee helpfulness 14% Store organization 14% Fun to shop 12% Store look/feel 10% Availability of contactless options 9% Embraces cutting-edge tech 3%

— One surveyed shopper

More than a third of shoppers report seeing more product outages at convenience stores today. Fewer today 7%

The good news is that when faced with a product outage, 35% of c-store shoppers say they purchase a different brand of the same product type. The bad news is that an almost equal number (34%) choose to go to a different store. Purchased same product 35% type, different brand

More today 34%

Went to a different store 34% Purchased different product type 33%

About the same 60%

Left without making purchase 32% Other 1% None of the above 6%

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Articles inside

Trends in DEI&B

CSNews Online

A Common Goal

Pumped-Up Connections

Retailer Tidbits

In the Public Eye

Couche-Tard Brings Electric Vehicle Charging to the U.S.

Convenience Channel Prepares for Busy Summer Travel Season

New Products