Despite the expanding number of stores in the convenience channel, it’s still losing market share to other retail channels, particularly grocery and discount retailers. However, there are plenty of opportunities to drive new growth and pick up some of that share, as Marcelo, Fazio, Director, Emerging Brands Beverage Vertical at NIQ pointed out during his presentation at ECRM’s Convenience and Impulse, Front-End & Checklane Sessions, held earlier this month in Orlando.

Younger shoppers are driving growth in many categories, particularly healthy foods and snacks, other tobacco products and wine- and spirit-based RTDs. What’s needed is a stronger focus on developing the right assortments and less reliance on promotions, which can erode profits. 

Below are three video interviews with Marcelo touching on some key takeaways from his presentation. To view the presentation slide deck, click here: NIQ ECRM COnvenience.pdf 

To register for next year's Convenience & Impulse Sessions, visit our Session page.

Convenience Store Category Trends
Tobacco, grocery and alcohol are still the top categories at c-stores in terms of department share, but of the top 10 super-categories, spirits and wine are the fastest growing, driven by the popularity of RTDs and more Gen Zers reaching legal age. 

These younger shoppers are also helping drive growth in several other categories, such as enhanced beverages and other tobacco products like vapes and nicotine pouches. In this video interview, Marcelo dives into category performance in the convenience store channel, what's hot among consumers, and why.

How Gen Z is Shopping the Convenience Store Channel 
The Gen Z demo provides great opportunities for the convenience channel, as many are reaching driving age and they are spending more time at c-stores. But they purchase products differently. For one thing, they prefer healthy alternatives for many categories, such as enhanced water. And while nicotine is not "healthy," they are turning to vapes and nicotine pouches vs. cigarettes. Even here, they are seeking unique flavors. When it comes to alcoholic beverages, they prefer imported beers, as well as wine and spirits-based cocktails in RTD cans. 

Are Convenience Stores Running Too Many Brand Promotions?
Are convenience stores running too many promotions? According to NielsenIQ's Marcelo Fazio, they are. Fazio points out that c-stores are much more dependent on promotions than other channels like grocery, whereas one would expect the opposite to happen because of increased competition between brands in a typical supermarket.

Consumers generally know what they are shopping for when they hit a convenience store, so such heavy numbers and depth of promotions are not really needed. What c-stores should focus on is having the right assortment, the right education and communication around that assortment, and a much more strategic approach to pricing and promotions.