US convenience stores reported positive revenue growth over the first six months of 2018. What could Australian stores learn from their success?
According to a report by the National Association of Convenience Stores (NACS), more than three in four (79 per cent) US convenience retailers said in-store sales increased over the first six months of 2018, compared with the same time last year.
In addition, more than half (56 per cent) said their fuel sales increased compared with last year. Only seven per cent of retailers said in-store sales declined. Just 19 per cent said fuels sales declined.
In a lesson for Aussie convenience stores, US retailers attributed this boost in sales to their focus on fresh and healthy items in-store.
Now they plan to dedicate even more sales space to these items. They cited the addition or expansion of the following items in their stores:
- Health bars (45 per cent of retailers added or significantly expanded over the first half of 2018).
- Fresh fruit/vegetables (41 per cent).
- Packaged salads (37 per cent).
- Nuts/trail mix (35 per cent).
But they also stressed the importance of their core offer – delivering value and choice for consumers, whether for healthy or indulgent food and drink.
“Fresh salads and smoothies, along with burgers and fries, seem to be the big winners so far in 2018 – the full spectrum of pleasure food versus healthy options,” retailer Dennis McCartney at Landhope Farms (PA) said.
Another lesson for Australian convenience stores is the importance of packaged beverages, particularly during summer. In the US, this category generates more gross profit dollars in-store than any other.
And as demand continues for healthier options, many US retailers are devoting more cooler space to lower-calorie and lower-sugar beverages options, especially waters.
During the first six months of 2018, a majority of retailers (54 per cent) say they’ve added flavoured/enhanced waters and regular bottled water (52 per cent).
Water also figures prominently in sales growth. Forty-six per cent of retailers are expecting more still-bottled-water sales to increase. Forty-two per cent are expecting sparkling-bottled-water sales to rise.
The quarterly NACS Retailer Sentiment Survey tracks retailer sentiment related to their businesses, the industry and the economy. A total of 74-member companies, representing a cumulative 2106 stores, participated in the July 2018 survey.
