(This article first appeared in the August 2023 issue of NACS Magazine.)

Q: As a solutions provider with a strong read on the convenience store industry, what major trends are you seeing in the industry right now?

Convenience retailers who are focusing on their shoppers’ needs are winning within the channel. Shoppers are experiencing financial and time pressures. Those retailers focused on having the assortment shoppers need and want, engaging in promotions, leaning into private label, executing an online sales plan and leveraging insights from shopper loyalty are positioned to win.

Addressing their unique shopper needs within the context of their building size is a delicate balance. For example, c-stores need to manage their mix of branded vs. private label items and to allocate space within their stores to reflect their shopper’s behavior, needs and wants.

One more: Increasingly, retailers are having success in foodservice with flavors that are on trend and by giving their customers the ability to customize orders.

Q: What do these trends mean for a retailer in terms of what they should be doing?

Two areas of focus for retailers include the value they provide to their consumers and the gaps in assortment between their stores and their marketplace.

In 2022, manufacturers pulled back on trade spend as an offset to the amount of price increases. Now is the time to offer shoppers deals on what they are looking for. Specifically, multiple packs, temporary price reductions or LTOs, and cross-promotional offers. Promotions aligned with cents-off fuel or “buy 2 save X” (two months on, one month off is the sweet spot) are driving volume and bringing consumers into the store. Consider more investments in private label to enhance your margins and take business away from traditional QSRs.

Large retailers utilize data to understand both their own sales trends and the emerging shopper demands in the market. Smaller retailers need to employ syndicated data to develop a holistic strategic plan to meet market and shopper needs. This will enable them to unlock incremental dollars through larger basket size and increased store traffic, with both new and repeat consumers.

Retailers who know their core shoppers have a huge advantage. This positions them to have the right products on the shelf optimally merchandised to encourage shopability, which translates to incremental sales. Because space is so limited in convenience stores, every square inch must be maximized. Convenience retailers need to leverage core items as well as offer the right mix of variety and innovation.

To continue learning about the importance of consumer data and how Advantage Solutions can help, check out the complete article in NACS Magazine.