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C- STORE


TIPS FROM: CSP DAILY NEWS Convenience is Vital


IRI reports that 23% of households purchased fresh foods from dollar stores, 19% from convenience/gas, and 10% from Trader Joe’s in the 52 weeks ending March 31. Ten percent of households also purchased fresh foods online.


IRI asked consumers to name the main reason they shopped for fresh at their preferred outlet and found that while price is important, convenience is vital.


TIPS FROM: CNBC Convenience Continues to Grow


Bucking past trends, produce sales in c-stores are now about $242MM per year, according to Jeff Lenard, vice president of strategic industry initiatives at the National Association of Convenience Stores (NACS). While this is still a fraction of the $61B in produce sold at grocery and big box stores annually, it demonstrates new opportunities for c-store operators.


This past week, the group released data that showed convenience stores experienced a 16th straight year of record in-store sales in 2018, with total sales surging 8.9% to $654.3B.


NACS anticipates that by 2026, $200B to $700B in grocery sales could move toward other nontraditional channels, like c-stores.


People, specifically Millennials, are keeping fewer foods in their pantry and reaching more often for prepared foods. And the higher the income, the fewer grocery trips that consumer is likely to make. Millennials would prefer to grab a premade salad after work than go home, make a meal, eat alone, and clean up dishes.


FIGURE II


C-Store FIGURE


C-Store Foodservice 20%


of Americans aged 18-29 visit a c-store for food


time per month. 3-4 Source: GasBuddy B WHAT’S IN STORE | 2020 1 in 4 Americans spent


at least once a week on a c-store foodservice item


$6 - $10 20%


of shoppers between 18-29 spent


$10 - $15 at least once a week. © 2020 International Dairy Deli Bakery Association Industry Landscape


Source: Maggie Fitzgerald, “Forget the Pretzels and Soda, Shoppers are Scooping Up Flowers and Salads at Convenience Stores,” April 6, 2019, cnbc.com


DOWNLOAD FIGURE


“Convenience is actually trumping price,” said Sally Lyons Wyatt, EVP, center of store and produce, for IRI. She said that with smaller-format stores, shoppers feel that they can run in and get what they need quickly and conveniently.


Nearly one-fifth of households purchase fresh foods from c-stores and gas stations, IRI says.


Source: Jennifer Strailey, “Convenience Trumps Price When it Comes to Fresh Good Sales,” July 26, 2019, cspdailynews.com

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