CHICAGO -- C-store sales for several top categories slipped in the first half of 2017. According to IRI, unit sales of cigarettes, the c-store channel’s largest in-store category, fell nearly 4% in the 24 weeks ending June 11, 2017. Many of the largest beverage categories—including beer, energy drinks, carbonated soft drinks (CSD) and sports drinks—also suffered unit-sales declines.
There’s one factor weighing on overall retail sales growth, according to IRI research: Consumers are simply not in the mood.
“A great number of consumers say they feel their economic position is going to get worse in the coming six months, so of course that has an impact on how much consumers are willing to open up their wallets and spend,” Viamari says. “All eyes are on inflation rates and gas prices.”
Many retailers, meanwhile, have been dialing back on promotional activity—perhaps too much, Viamari says: “It’s something that needs to be done, but consumers are really avidly seeking deals, so there’s a balance there to be struck.”
She suggests c-store retailers target consumers who are most likely to shop the channel. This includes what IRI segmentation research defines as “optimistics,” or lower- to middle-income urban shoppers who demographically skew African American. “These guys are big shoppers in c-stores,” she says. “They’re very social and into deals like coupons, where they have an opportunity to save.”
Another group with c-store leanings are “the cautious and worried”: lower- to middle-income consumers who are 56 and older and tend to live in rural areas. “These guys want a more local feel,” Viamari says. “They are big on deals, prices, value and getting products made in the USA.”
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