The convenience store channel is undergoing a bit of a metamorphosis.
June 11/Chicago/Business Wire -- The convenience store channel has long been a destination for immediate consumption purchases. However, the channel is undergoing a bit of a metamorphosis. Competition is heating up, as convenience stores are pitted against other channels, particularly dollar and drug channels, for share of spending. In addition, two major sources of revenue and trip behavior for convenience stores, gasoline and cigarettes, are facing their own challenges with high prices, increased taxes, and, for cigarettes, changes in consumers' lifestyles. Information Resources Inc.'s (IRI) latest Times & Trends report, "Convenience Stores: Keep the Core; Appeal to More," investigates how convenience stores can tackle the challenges of today's economic and shopping environments to find sustainable growth beyond fuel and cigarette sectors.
Today, there are more than 149,000 convenience stores in operation. About two-thirds of those stores are independently owned, and the remaining are chain store operations. While convenience stores of the past had a rather homogeneous look and feel, today's stores are much more varied. Furthermore, some convenience store owners are replacing long aisles with kiosks, experimenting with larger footprints and adding "good-for-you" products next to the candy bars. Shoppers have rewarded convenience store management for these innovations. When compared to grocery and drug stores, convenience stores were the only channel that enjoyed both dollar and unit sales growth in 2012.