In Video: How your neighborhood convenience store may be changing
One-Stop Shop, But Profits Hard to Come By: Convenience Stores Struggle
As consumers, we often flock to what seems like the ultimate One-Stop shop – convenience stores. We grab a quick bite, fill up the tank, or pick up a few essentials. But, for owners like Jesse Singh, who runs a 7-Eleven store in Los Angeles, the notion of a one-stop shop is painting a different picture. In a bold move, Singh is rolling out new deals, but what’s that doing to sales? Are some customers really that picky about their stuff, having already made up their minds what they’ll get in the store, and just wanting to grab and go?
Shrinking Sales
Nationwide, convenience store sales are falling 4% over the past year, according to research firm NPD. Even popular snacks are down 6%, with refrigerated items experiencing a nearly 7% decline. So, what’s going on?
Health-Conscious Consumers
Many experts point to the growing trend of health-conscious consumers. As some consumers realize the link between food and their well-being, they’re becoming more discerning about what they put in their bodies. "The younger me would grab like everything, like, whether it’s spicy, sweet, salty, sour," says one consumer. "But the older I get, the more I realize I’m just more cognizant of like how it makes me feel." This shift has led to a surge in demand for healthier options.
Fast Food Giants
The food industry is adapting to these changes. Convenience stores are now taking on fast food giants by offering hot menu items at competitive prices. The National Association of Convenience Stores reports that hot food demand is surging, making up nearly 30% of all sales. At Singh’s store, deals are front and center, with no chances taken in this changing industry.
Conclusion
In an uncertain economy, the convenience store model is evolving. Stores must adapt to keep pace with shifting consumer preferences. Will this new approach be enough to stem the decline in sales, or will consumers continue to be picky, sticking to their pre-conceived notions of what they want to buy? Only time will tell.
