How to Win in Your Region
By Abbie Westra on Feb. 27, 2017GLENDALE, Ariz. -- What flies off shelves in Santa Fe just might die on the vine in Syracuse, making regional consumer behavior critical to a retailer's set-building strategy.
To help convenience-store retailers go beyond national data and home in on their shoppers, CSP and Technomic surveyed 2,500 c-store customers coast to coast to identify what they want out of the c-store shopping experience.
Those findings were shared with attendees of Convenience Retailing University, held by Winsight Feb. 22-24 in Glendale, Ariz. Presenters Mitch Morrison, vice president and head of retail executive platform for Winsight Media, and Donna Hood Crecca, associate principal of Technomic, shared critical ways retailers can win with today’s consumers, from one region to the next.
Here is a breakdown of consumers in four regions of the United States ...
Northeastern consumers
Who they are: Northeasterners are heavy c-store users, with 84% of consumers 21 to 34 years old visiting weekly, and 94% reporting that they visit monthly, according to the 2016 CSP Consumer Study. These c-store customers are also largely urban (72% of urban residents visit once a week or more), and overindex on planned c-store visits. More than two-fifths of Northeasterners report that a visit to their c-store is part of their lifestyle.
How to win them over: Consumers in the Northeast have the highest incidence of morning visits (33% of consumer visits vs. 28% overall). They also reflect a greater demand for prepared foods, household items and periodicals. Strategize around the coffee occasion—especially because the cafe competition is tough in the Northeast—as well as foodservice in general. This group has the highest level of confidence that c-stores are just as capable as restaurants in offering fresh prepared foods and beverages, so leverage that. They also have strong interest in made-to-order and food-focused, fuel-free formats.
Who is winning: QuickChek is a poster child for the Northeastern c-store experience, with a major focus on coffee and foodservice, including made-to-order options.
Western consumers
Who they are: Western c-store customers have the lowest frequency across the country, with 59% reporting they visit weekly (compared to 64% overall) and 77% visiting monthly (vs. 83% overall), according to the 2016 CSP Consumer Study. It’s also the region least likely to say c-stores are part of their routine. Why? Fewer locations (17% say they have to go out of their way to find a gas station, vs. 12% overall), and a drop in locations (23% say there are fewer c-stores nearby than five years ago). The upside is that Western c-stores have the highest conversion rates of fuel consumers going into the stores, with 62% entering the store every time or nearly every time, vs. 57% for consumers overall.
How to win them over: Location is key, so look for market coverage gaps. Beverage is also a critical driver of visits, and shoppers in the West are seeking functionality in the cold vault and dispensed-beverage area. Foodservice is also a large opportunity for the Western consumer, and retailers would be wise to focus on Mexican menu items, pizza, hot dogs, fruit and dessert—all of which overindex in the West. On the tobacco front, Westerners have higher engagement with e-cigarettes, e-liquids, hookah, chew, pipe tobacco and cigars than other regions, so ensure you have a well-rounded backbar.
Who is winning: Plaid Pantry has found a way to add incremental convenience to the Western shopper's day by partnering with Amazon to install Amazon Lockers in 70 sites.
Southern consumers
Who they are: What Crecca and Morrison called the “traditional” c-store consumer, the Southern patron overindexes on fuel purchases, tobacco and fountain beverages. The roller grill is also critical for the Southern c-store shopper, who reports the roller grill will prompt a visit to a c-store, and 52% of respondents purchase off the roller grill once a month or more.
How to win them over: The store itself is the priority for Southern shoppers. Eighty-two percent prioritize cleanliness, and this region’s consumers have the highest preference for touch-free restrooms, store decor and ambiance, store organization and personal safety. So “glorify the store,” said Crecca, compete on price (80% prioritize overall value and low prices), and play to regional product preferences for food and beverage—especially iced teas.
Who is winning: QuikTrip's focus on the roller grill and beverages is spot-on with the demands and desires of its Southern customer base.
Midwestern consumers
Who they are: Home to some leading c-store brands, the Midwest has developed a c-store consumer base that is focused on high value: a greater variety of products, loyalty programs (56% say loyalty programs influence where-to-go decisions), coupons and special deals. This region’s shoppers are the most likely to use indoor seating and free Wi-Fi. Sixty-six percent of Midwestern consumers visit at least weekly, and 84% visit at least monthly, according to the study.
How to win them over: The Midwest consumer prioritizes beverages—especially coffee, hot chocolate, domestic beer and spirits. They also like their indulgences, overindexing on doughnuts, pizza and packaged snacks. Win them over by rewarding their loyalty, be they urban dwellers or rural shoppers. Invite them to stay awhile with a warm environment, seating and a place to connect with others. Deliver on their favorite food items, and find ways to offer both freshness and indulgence.
Who is winning: Kum & Go's mobile app offers special deals available only to users, while seating invites shoppers to stick around.