Infographic: Fueling the convenience channel

by Monica Watrous
Share This:
Search for similar articles by keyword: [Food Service], [Prepared Foods], [Retail], [Consumers]

HOUSTON – Hispanic consumers are more likely than non-Hispanics to purchase groceries from convenience stores, according to a recent report from The NPD Group.

Click on the infographic to view full-sized:

Using the channel as a substitute for or supplement to supermarkets, Hispanic consumers average nearly two more visits a month to major oil chain convenience stores and about one more visit a month to traditional convenience stores than non-Hispanic consumers.

More than two-thirds of Hispanic shoppers consider the availability of fresh food at convenience stores as somewhat or very important. They are 27% more likely to buy dairy or ice cream products and 23% more likely to buy bread at convenience stores, compared to non-Hispanic shoppers, who are 7% and 13% more likely to purchase those items in the channel, respectively. Hispanic consumers are 19% more likely to buy fresh food prepared on-site (compared to 6% of non-Hispanics), 18% more likely to buy grocery foods (compared to 5%), 13% more likely to pick up perishable groceries (compared to 7%) and 11% more likely to buy single-served pre-packaged foods (compared to 2%) from convenience stores.

“As one of the fastest growing U.S. population groups, Hispanics are an important segment for the C-store channel,” said David Portalatin, convenience store industry analyst for the NPD Group. “As this report reveals, having a good range of grocery-like items and other staples may increase Hispanic traffic, and promoting fresh foods considered to be more home-made or cooked should resonate well among Hispanics.”

According to the International Dairy-Deli-Bakery Association’s (IDDBA) “What’s in Store 2013” report, convenience store foods prepared on-site experienced 13% growth in average sales per store in 2011. Many convenience stores have installed convection ovens, high-speed ovens and fryers, and they have renovated their food service space to expand and upgrade its value-oriented, prepared food offerings.

Additionally, a number of popular consumer brands are expanding into the convenience store channel with products designed for the store’s limited facilities and time-crunched clientele.

“Food service has been a growing category in c-stores for some time and currently accounts for a higher percentage of gross profit margins than fuel or tobacco,” said John Oros, senior manager of business development for c-stores with The Hillshire Brands Co., during The Association for Convenience & Fuel Retailing’s NACS Show in Las Vegas last October. “Operators understand that selling premium products can generate higher-profit margins and enable them to earn more revenue.”
Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.