PEACHTREE CORNERS, Ga. — Petroleum and convenience-store retailers are struggling as grocery and big- box retailers take the largest share of the fueling market, according to the latest study by Market Force Information. Consumers are taking advantage of the convenience of an on-site fueling station and loyalty price savings while performing their regular grocery shopping, it said.
Grocery and big- box retailers are taking nearly $1 in $3 fueling dollars, said the Peachtree Corners, Ga.-based customer experience consultancy.
For its annual competitive study, Market Force surveyed more than 10,000 U.S. consumers and released the data in late May. It asked about their fuel and c-store purchasing habits, including brand preference, customer experience, brand engagement and awareness. Respondents provided feedback on technology usage and store amenities to reveal which customer experience attributes helped high-performing brands stand out from the competition. The firm averaged the data to evaluate each brand on an aggregation of overall experience and likelihood to recommend, creating the Composite Loyalty Index (CLI).
Here are the major findings …
Wawa, Wawa, Pa., Kwik Trip, La Crosse, Wis., and QuikTrip, Tulsa, Okla., compete “fiercely” for the lead with nearly identical CLI scores, the study showed. Overall sentiment has increased with Wawa still taking the lead, according to Market Force. The top three brands that improved CLI scores significantly were Marathon Petroleum, Findlay, Ohio, up by 17 points, followed by Mobil, Irving, Texas, with a 15-point gain and RaceTrac, Atlanta, up 13 points over 2018 results.
Shell, Houston, received the most fueling visits representative of its large market share, the report said.
Compared to petroleum and c-store locations, the perception of fuel quality is higher with grocery and big-box retailers, along with loyalty, with nearly 2 in 3 customers indicating brand loyalty.
Costco, Issaquah, Wash., and Kroger, Cincinnati, received the most fueling visits but Costco and BJ's Wholesale Club, Westborough, Mass., lead with excellence among their loyal customer base. The top three grocery and big-box brands to improve significantly were Safeway, Pleasanton, Calif., up by a “staggering” 20 points, followed by BJ's, with a 10-point gain, and Walmart, Bentonville, Ark., up 8 points compared to 2018 results, the report said.
Market Force also looked at app adoption. More than 1 in 4 consumers surveyed now use petroleum and c-store apps with adoption quickly growing amid the younger age group of 25-34. Retailer-branded apps have outpaced industry-targeted apps like GasBuddy, which now takes second place, followed by Google Maps and Waze.
Locating gas stations and comparing prices are the top used features for apps at 69% and 65%, respectively, with paying for purchases showing the greatest growth from 1% in the last survey, to 22% in 2020.
This data demonstrates the role technology plays in the petroleum and c-store industry and how having an app available may drive a consumer's choice of brand and location for fueling.
When it comes to consumers selecting a fueling station, customer satisfaction takes much more than having competitive gas prices, said Market Force. A clean, well-maintained location, good brand imaging and a problem-free experience is critical, it said.
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