C-Stores Substitute for Costly Stock-Up Trips
Once again, poor people are looking for ways of stretching limited funds. Buying in bulk, especially when getting to the store involves an expensive car trip, may not be an option. Even scraping together the cash for a weekly shop can be unrealistic for many. One alternative to stretching the food dollar may seem counter-intuitive - convenience stores.
A recent report in The Washington Post about a convenience store in Arlington, Virginia outlines customers' changing purchases.
Zulfiqar Ali has recently added a range of grocery basics to the more usual newspapers and magazines he sells in his 7-Eleven store. Customers who usually pop in for the odd container of milk are now coming in more frequently and buying a much wider selection of products including fresh fruit, pancake syrup and black beans. Responding to "popular demand," he has increased staples such as salt, sugar and cooking oil as well for shoppers who have been spending as much as $150 on a single visit to the store. Nor is he alone in noticing the change.
Tom Gerrity, director for processed foods in 7-Eleven's Washington region, said they are seeing more customers "buying products that would typically be purchased at a supermarket or club store...throughout the month at a 7-Eleven." At 7-Eleven stores in the Washington region, grocery sales were up 2 to 3 percent last month compared with last year, he added. Frozen food sales grew 7 percent, and ready-to-eat meals jumped 9 percent. Other regions across the country are seeing similar growth. The shift in focus reflects people going for what they need when they need it rather than buying in bulk or stocking up.
7-Eleven ranks impressively against grocery destinations in the DC market, according to Food World magazine. The chain comes in ninth, just ahead of chains such as Harris Teeter and Whole Foods, with a 3.3 percent market share. That's largely due to 7-Eleven's nearly ubiquitous availability, with over 400 stores in the region.
Researchers TNS Retail Forward say that most people still go to convenience stores as an incidental when filling up with gas, citing grocery shopping last as a reason. But, as their senior consultant, Jennifer Halterman points out, "It's important to add destination appeal so that shoppers think of them not only as convenience. Adding that second layer can help them in the future."
Discussion Questions: Do you expect a significant shift from major grocery store stock-up trips to more frequent convenience store trips? How can small stores and c-stores adjust to meet the needs of economically struggling customers in these times?
Author's comment - perhaps this is an inner-city phenomenon but it is kind of sad, really. People pay more for individual items because they can't afford to drive to a stock up store and shop economically. Also, people live hand to mouth and don't have the money to do a full-week's shopping trip.