The convenience store industry has once again shown resiliency. As essential businesses, store operators have kept doors open, products stocked, pumps working, and employees engaged. Depending upon where stores lie geographically, they have experienced higher demand for grocery products, tobacco and alcohol beverages, as well as, lower demand for ready-to-consume foodservice products – unless the foodservice is delivered to home or curbside. While initial in-store sales dipped 15-20% in many locations, retailers are now sharing that sales are normalizing to 2019 levels and some are even reporting modest increases. Fuel gallons dipped 30-50% initially, but margins have helped with demise in demand and volumes are slowly rising again, however, consensus is that overall demand will be lower than pre-COVID levels.
Like many retailers, we see opportunity. Consumers are utilizing convenience outlets for different use occasions, providing the option for retailers to sell more traditional grocery items, offer meal components for home meal preparation and provide a small contactless environment for shopping. The resiliency of the convenience industry is once again on full display.
In addition to increased operational costs from the need for PPE, most retailers are adjusting wages to further acknowledge employees, and dealing with a change in operating margins due to the change in sales mix inside the store. Retailers will look for ways to create efficiencies, reduce other operating expenses, obtain new streams of revenue and keep employees safe. What can you offer?
Kay Segal founded Business Accelerator Team in 2015 with an eye on providing business solutions focused on accelerating revenue in the c-store, foodservice and B2B media industries. Kay’s vast industry experience stems from a variety of roles at CSP Information Group (now Winsight), Circle K Company, 7-Eleven, and Sky Chefs, where her combined experiences positioned her to offer diverse industry insight and a unique niche of services that help clients bolster profitability.
