The key to achieving success in the convenience store industry is simple, as stated by Saputo Dairy UK: offer the right range with good availability and good value. According to Allison Wallentin, convenience category manager at Saputo Dairy UK, stocking a breadth of range is essential for winning the top-up shop mission. By providing enough variety, convenience stores can entice customers to not only purchase a pint of milk or a loaf of bread but also to do a full shopping trip and buy the components of a meal.
One sector that should not be overlooked by convenience stores catering to top-up missions is the fresh and chilled category. More than six out of ten convenience shoppers shop in this category, spending an average of 22% more per trip compared to shoppers who only buy ambient goods. In fact, this category contributes 25% of grocery revenue in the convenience channel. Since convenience stores are meant to be convenient, ensuring 100% availability of staple items is crucial to keeping shoppers coming back. If availability falls short, shoppers will stop using a store, regardless of its promotions.
Bread and bakery products are particularly important for convenience stores as they often bring in shoppers. When someone comes in for a loaf of bread, they are likely to pick up a few other essentials as well. Therefore, having a good bakery section is a sound investment. Shelf life can be a concern for convenience retailers, especially when it comes to bakery products. However, Brioche Pasquier offers a solution. Despite being baked without preservatives, their products have a long shelf life of 21 days.
Another trend in the convenience store industry is the “lipstick effect.” During the cost-of-living crisis, sales of affordable luxuries, such as confectionery, have been on the rise while other products struggle. Many households see confectionery as an affordable way to treat themselves. Therefore, it’s important for retailers to stock up on impulse purchases, with chocolate and sweets remaining in high demand for unplanned purchases. Top-selling products in convenience stores include impulse treats like chocolate bars, kids’ novelty sweets, and sharing bags. Limited edition flavors and price-marked share bags are particularly driving consumer trial and repeat sales in the current climate.
Offering everything everyone wants within a small-footprint store can be challenging, but responding to the local needs is key. Retailers should evolve their top-up offering and optimize it to the needs of the local demographic. In summary, success in the convenience store industry comes down to offering the right range with good availability and good value, while also adapting to local preferences and needs.
