HOUSTON - Convenience stores are losing market share to other retail outlets, reports The NPD Group in its new Convenience Store Monitor, which tracks consumer purchasing behavior of more than 51,000 c-store shoppers in the U.S.

In the quarter ending December 2011, non-convenience store outlets, including grocery and mass market retailers, dollar stores, and drug stores, captured 9.3% of convenience store traffic, a 2% increase from the same quarter in 2010. Convenience store traffic overall dipped 2% for the quarter from the same quarter last year.

The main reasons consumers shop at a convenience store ?" convenient location, efficient shopping experience, and extended hours of operation ?" are now shared at non-traditional outlets.

According to the report, 79% of consumers who visit a convenience store did so because of its convenient location, while 67% chose a non-traditional store for the same reason. Getting in-and-out of a convenience store quickly was a deciding factor for 44% of consumers, while for the same reason, 40% chose a non-traditional outlet. And 21% of consumers visited a convenience store because of longer hours of operation, while 24% reported that as the reason for shopping at other retail outlets.

"There is no doubt that convenience stores are facing stiff competition from non-traditional retail outlets," said David Portalatin, convenience store channel analyst for NPD. "Convenience stores need to glean as much insight as they can from the preferences that consumers are exhibiting. When they do that, they can differentiate themselves from the competition by providing offerings most relevant to their consumers."