Clearly, c-stores are feeling the pinch. Two out of three key consumer purchase metricschannel penetration and visit frequencyare in decline. Only "average check" has managed to increase in this difficult environment. But in this era of dramatic change, one thing hasn't changed. The heavy c-store shopper is as important to the channel as ever before.
Heavy c-store shoppers, defined as those who visit convenience stores more than eight times per month and spend $10 or more on each visit, are critical to c-store success regardless of what's happening in the economy. These c-store heavyweights make up only 8% of all c-store consumers, but they generate 20% of all c-store visits and account for 40% of the dollars spent.
An analysis of c-store consumers over the years reveals a relationship between heavy c-store shoppers' share of the market and their contribution to total sales, whether economic times were bad or good overall. Developing a solid following of these valuable consumers is a critical foundation for healthy c-store sales in any economy, NPD said.
Once retailers identify heavy c-shoppers they can explore their purchase behaviors, attitudes and demographics to uncover how to attract and retain this critical consumer segment. But top convenience retailers already have these customers and their needs imprinted on their operational DNA.
These retailers are encouraged to use consumer analysis to help examine opportunities for diversifying the customer base and finding platforms for growth beyond the heavies. For example, segmentation analysis reveals that some moderate c-store spenders actually may be heavy patrons of lower-price-point but high-frequency categories such as coffee and fountain beverages. These categories could be viewed as "gateways" to nurture a new, more diverse customer base with a broader reach into the total potential market.
Deeper insights into this kind of behavioral consumer segmentation can help retailers go from good to great by solidifying the heavy shopper foundation while also developing strategies for growth among new segments.
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The NPD Group, Port Washington, N.Y. is a leading provider of consumer information for the North American petroleum marketing and convenience retailing industries. Industry leaders use the essential market information available in NPD's Motor Fuels Index and Convenience Store Monitor to assist in making more effective business decisions.
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