April 2014 - Part 3 - Industry Insights: Segmentation Study of Independent C-stores
“But I’m different!!!”….or are you? Each convenience store owner or operator believes in his/her heart that his/her store is “different” from the independent store across the street or the chain store down the road. The dynamics and variability of the convenience channel have indeed created an extremely diverse and fragmented trade-class. But just how different, or similar, are you to other stores and what are the factors that drive differences in store performance?
MSA, in collaboration with several major manufacturers, conducted a segmentation study to understand this 70,000+ independent-retailer universe. This study revealed that eight distinct store-segments exist based on these factors. Many of these segments are nationally-represented, with several regional groups identified. The segments are:
1. National segment of “traditional” high-volume, full-service c-stores
2. National cluster of low-volume, small-town “mom & pop” type stores
3. Urban Hispanic segment on both coasts
4. Smaller metro cigarette stores
5. Smaller variety-type stores found heavily in the northeast
6. Smaller stores with a focus on snuff/chew and confections in the south
7. Extremely high-volume, suburban stores in the southeast
8. Large, high-volume, full-service stores in the northeast & Rust Belt
Read more to learn about the characteristics of the Urban Hispanic and Smaller Metro Cigarette Store segments. Do either of these two segments describe your store(s)?
Check back for upcoming details about the characteristics of each segment.
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