News

Convenience stores sales up in 2010

April 10, 2011

The nation's convenience stores reported higher sales last year, partly because there are more store locations.

According to figures released last week by the National Association of Convenience Stores, convenience store in-store sales grew 4.4 percent in 2010, reaching a record $190.4 billion.

Combined with $385.3 billion in motor fuels sales, total convenience store sales in 2010 were $575.6 billion, or one out of every 25 dollars of the overall $14.624 trillion U.S. gross domestic product.

Part of the sales growth can be attributed to an increase in stores. The number of U.S.-convenience stores grew 1.2 percent over the past year and stands at a record 146,341 locations.

David Portalatin, executive director of Industry Analysis for NPD Group, a market research firm, said convenience stores "are maturing into a relatively sophisticated-retail channel with a pretty well-developed fresh-prepared food offering that's inexpensive, yet still quick."

Modern c-stores offer more options

The Pittsburgh Tribune-Reviewreported that the smaller, franchisee-owned convenience stores should be worried about concepts such as GetGo by Giant Eagle. This modern c-store offers fresh, made-to-order food options for busy, on-the-go customers, as well as fuel discounts.

Grocery-store chain Giant Eagle's new GetGo store bakes bread for made-to-order subs and sells 30 varieties of coffee, cappuccino and tea, including frozen drinks and milkshakes from a self-serve machine with a touchscreen. There are also 16 gas pumps and a car wash.

O'Hara, Penn.-based Giant Eagle launched the GetGo concept as a joint venture with fuel supplier Guttman Enterprises. GetGo has 162 stores, including 75 in the Pittsburgh area.

Its South Fayette, Penn., location, which opened in November 2010, is the platform for new stores, and the 5,500-square-foot store features a seating area with Wi-Fi service, and a circular "cash wrap" counter that has several checkout points.

"The GetGo program is superb, and the brilliance of the food and fuel frequent shopper card overlay makes it that much tougher to compete against," said Burt P. Flickinger III, managing director of Strategic Resource Group, a retail consultancy based in New York.