Retailers should expect consumers to continue being more deliberate with their shopping trips as it is plausible that customer pricing sensitivity will have a widespread adverse impact on c-stores into the start of 2022 given the rising costs and supply chain shortages.
To offset the impact, PDI recommends convenience retailers focus on driving customers to their forecourt with fuel savings at the pump, and provide loyalty offers that meet shoppers’ trip missions through occasion-appropriate bundles. These bundles can deliver value beyond price discounts, helping operators mitigate cost-of-goods pressures and, in turn, increase in-store traffic and basket spend, the company noted.
The greatest opportunity to convert fuel trips, according to PDI, is between lunch and early evening as consumers head home from work, so retailers should consider offering fuel discounts for in-store purchases to drive in-store traffic in the early evening.
Category Analysis
Dollar sales in the convenience channel were slightly higher this month vs. a year ago, but not all product categories are experiencing growth.
The packaged beverages category is a bright spot, maintaining a strong growth path with energy, water and sports drinks leading for the month of October. In fact, since 2019, packaged beverages and beer have experienced double-digit growth driven by larger basket spend and only a 2 percent loss of trips, compared to a 13 percent loss for other categories.
