C-Stores See Increases In Visits, Dollars In 1Q13

HOUSTONConsumers are finding value in convenience stores, marked by a 2% gain in customer traffic, which led to a nearly 6% increase in dollars in the first quarter of 2013, compared to the same time one year ago, according to new market data from The NPD Group.

NPD's Convenience Store Monitor found that visit frequency grew quarter-over-quarter to 6.1 visits in a 30-day period for the average conventional convenience store shopper. Traffic gains in the first quarter were concentrated at traditional c-stores which increased by 9% from last year, while visits to major oil and small  convenience store chains declined by 5% and 1.1%, respectively. Rising gasoline prices during the quarter, $3.37 per gallon at the beginning and $3.74 per gallon at the close of the quarter, contributed to a c-store penetration decrease. Almost half of the U.S. population, 48.8%, reported a c-store visit in the past 30 days, down slightly from one year ago and also from the 4Q12, when penetration was 49.5%.

Rewards and loyalty programs are gaining more traction among traditional and major oil chain shoppers as 7% of conventional  convenience store shoppers cite rewards or store loyalty as a reason for chain selection. Also, 5% of shoppers cite coupons, discounts, sales and promotions as a chain selection reason, with this addition, 1 in 10  convenience store shoppers selects a store for its deals.

"As discounts become the new normal, and consumers continue to seek them, conventional convenience retailers will have to offer overall value for the experience in the coming months to entice repeat visits and overcome consumer spending hesitations," said David Portalatin, NPD c-store industry analyst. Convenience store visits and spending were also up 4.6% in the fourth quarter of 2012.